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HomeMy WebLinkAboutMS-18-05 - Decision - 0000 Market Street#MS-18-05 CITY OF SOUTH BURLINGTON DEPARTMENT OF PLANNING AND ZONING SNYDER-BRAVERMAN DEVELOPMENT CO., LLC —MARKET STREET MISCELLANEOUS APPLICATION #MS-18-05 FINDINGS OF FACT AND DECISION Miscellaneous application #MS-18-05 of Snyder -Braverman Development Co., LLC to establish compliance with Inclusionary Zoning requirements for current and future residential development, Market Street. Based on the plans and materials contained in the document file for this application, the Administrative Officer finds, concludes, and decides the following: FINDINGS OF FACT & CONCLUSIONS OF LAW 1. The Applicant, Snyder -Braverman Development Co., LLC, seeks miscellaneous approval to establish compliance with Inclusionary Zoning requirements for current and future residential development, Market Street. 2. The Subject Properties, also referred to as "The Project" and "The Project Area", include: • Parcel 0450-0000 and all subsequently subdivided parcels — owner of record: South Burlington City Center, LLC • Parcel 0450-000OA and all subsequently subdivided parcels — owner of record Snyder - Braverman Development Company, LLC 3. The Subject Properties are located in the City Center Form Based Code Transect 5 (T5), Transect 4 (T4), Transect 3 (T3), and Transect 3+ (T3+) Districts and total 33.6 areas of land. 4. The application was received on September 20, 2018. 5. The plan submitted is entitled "South Burlington City Center, LLC, Market Street & Garden Street City of South Burlington Phased Development Plan for Inclusionary Zoning", prepared by Lamoureux & Dickinson Consulting Engineers, Inc., dated 08/02/18 and last revised 09/18/2018. Additional submittals include: • Application Form, dated 9/13/2018 • Table of Affordable Housing, dated 9/17/2018 • Miscellaneous Permit Cover letter, dated 9/13/2018 • Miscellaneous Permit Narrative dated 9/21/2018 6. The Subject Properties have been permitted for 543 residential units by the Vermont District Environmental Commission #4, Permit #4C0503, as a Priority Housing Project. 7. Two buildings located within the Subject Properties have previously received site plan approval: • SP-17-29A [as amended], 146 Market Street, for 39 dwelling units and 10,039 sq. ft. of non- residential space • SP-18-18 [as amended], 310 Market Street, for 60 dwelling units 8. At the time of this application, the applicant has received site plan approval for 84 dwelling units within the Subject Properties that qualify for the affordability requirements specified in in Section 18.01(D) of the Land Development Regulations. - 1 - #MS-18-05 PERMIT HISTORY AND CONTEXT: The purpose of this permit application is to memorialize the process for calculating and tracking compliance with inclusionary zoning regulations as outlined in Article 18 of the South Burlington Land Development Regulations for the Subject Property. The applicant and landowner have pursued a coordinated development encompassing 33.6 acres of land on both sides of Market Street. Prior approvals for the property include a subdivision of land to establish lots related to 146 Market Street (SD-17-03), site plan approval for development of a four-story mixed use building at 146 Market Street (SP-17-29A), a conditional use approval for wetland and wetland buffer impacts (CU-18-01), subdivision approval establishing several lots including 310 Market Street (SD-18- 13), site plan approval for a four-story residential building at 310 Market Street (SP-18-18), subdivision approval for establishment of lots at 451, 465, 481, and 495 Market Street (SD-18-21), and related approvals for minor amendments to the above. The applicant is seeking approval to establish a mechanism for compliance for Inclusionary Zoning standards throughout the Project area. REVIEW CRITERIA: 18.01 Inclusionary Zoning A. Purpose. Inclusionary zoning to provide affordable and moderate income housing in the City Center Form Based Codes District of the City of South Burlington has been adopted pursuant to 24 VSA § 4414(7) for the following purposes: (1) To implement policies that support achievement of housing goals, objectives, and targets included in the South Burlington Comprehensive Plan as most recently amended; (2) To affirmatively address the current and anticipated need for affordable housing units among low- and moderate -income South Burlington households that pay more than 30% of their income on housing, as described in state law (24 VSA § 4303(1)); (3) To mitigate the impacts of market -rate housing development that is unaffordable to low - and moderate -income households on the cost and supply of land and infrastructure available for affordable housing development in the City Center Form Based Codes District, (4) To promote the integrated development of mixed -income housing in the City Center Form Based Codes District, including a range of housing options needed to strengthen, diversify, and contribute to the vitality of City Center and the South Burlington community; (5) To ensure that affordable housing opportunities are available in the City Center Form Based Codes District, which is or will be accessible to goods and services and served by existing or planned public transit services; (6) To ensure that affordable housing units developed under inclusionary zoning remain affordable. (7) To provide integrated development incentives that contribute to the economic feasibility of providing affordable housing units, including eliminating maximum residential densities, minimum lot sizes, and minimum parking requirements for residential units within the City Center Form Based Codes District. -2- #MS-18-05 Conformance with the Purpose of this Inclusionary Zoning requirement will be assessed through each of the individual review criteria. B. Applicability (1) Covered Development. Except as otherwise provided in this bylaw, the provisions of this section shall apply within the City Center Form Based Codes District to any development, notwithstanding any phasing of the development, that will result in the creation of twelve (12) or more total dwelling units through subdivision, new construction, or the conversion of an existing structure or structures from non-residential to residential use. For purposes of this requirement, two or more developments shall be aggregated and considered as one development subject to this section if. (a) The developments are located on abutting properties; and (b) The developments are owned or controlled by the same person; and (c) Either: (i) The developments will undergo subdivision, construction, or conversion of an existing structure or structures from non-residential to residential use within the same five- year period, which period shall be measured from the date a proper and complete application is first submitted, or (ii) A master plan exists, as approved by the City, which includes two or more of the developments. This sub -section B(1) establishes a threshold beyond which the requirements of the Inclusionary Zoning requirements of the Land Development Regulations apply. It includes provisions that indicate when two or more developments are to be aggregated and considered a single project in order to ensure that a single controlling agent proposing housing on adjacent properties is not permitted to repeatedly remain below the thresholds for applicability of these standards. In this present proposal, the applicant is seeking to have the entire Project area designated as a single development in order for the Project area to be subject to a common review structure for Inclusionary Zoning purposes. With regards to the three (3) criteria for determining Covered Development listed above, the Administrative Officer finds that: o For the purposes of this application, all properties within the Project area are considered abutting; o The subject properties are owned by South Burlington City Center LLC, and controlled by Snyder -Braverman Development Company, LLC and Blackbay Ventures VIII, LLC collectively considered the "Controlling Agent". o The time frame for the Project's applicability under these regulations is met by virtue of the applicant seeking to be considered a single project via this application. These findings, however, shall not preclude additional developments outside the Project area indicated on the Plan, from also being considered "Covered Development" if these criteria are met by any such developments. (2) Exemptions. The following developments are exempt from these requirements: (a) Projects that are developed by an educational institution for the exclusive residential use and occupancy of its students. -3- #MS-18-05 (b) institutional, group homes or group quarters housing, including long-term care facilities. (c) The redevelopment of existing dwelling units in a project that produces no additional units. The Administrative Officer finds that the exempted development types enumerated above will remain exempt from the Inclusionary Zoning requirements of this Section. C. Inclusionary Units (1) For covered development, at least five percent (5°o) of the total dwelling units offered for rent or sale, including units offered for sale in fee simple, shared, condominium or cooperative ownership, shall be affordable to households having incomes no greater than 80% of the area median income (AMI) adjusted for household size. An additional five percent (5%) of the total dwelling units shall be affordable to households having incomes no greater than 100% of the AMI adjusted for household size. An additional five percent (5°o) of the total dwelling units shall be affordable to households having incomes no greater than 120% of the AMI adjusted for household size. The Administrative Officer finds that at all times, the Project must remain in compliance with the minimum number of inclusionary units enumerated in this Criterion. (2) Inclusionary units required under this section shall be: (a) Constructed on site, unless off -site construction is approved under Subsection (E)(1)(b) (Off -Site Construction) of this Article, and integrated among market rate units in the development. The applicant has requested that the entire Project area be considered to be "on -site" for the purposes of Section 18.01, and that the distribution of approved and proposed inclusionary units within the Project area be considered to have met the requirement for being "integrated among market rate units in the development." The Administrative Officer considers the following in consideration of this request: o The applicant has obtained site plan approval for 84 dwelling units [39 units at 146 Market Street and 45 units at 310 Market Street] that meet the Affordability Requirements of this Section among the first 99 total dwelling units having received site plan approval; o The entire Project area is subject to the single permit from the District Environmental Commission #4 [#4C0503] to include approximately 543 residential units; o The buildings at 146 Market Street and 310 Market Street are located in different transect zones (T5 and T4, respectively), are separated by a distance of greater than 700' along Market Street, and have two planned roads between them; o The building at 310 Market Street contains a mix of45 dwelling units meeting Affordability Requirements and 15 market rate units; o The applicant has committed to constructing a minimum of 32 additional affordable dwelling units (beyond the 84 previously approved at 146 and 310 Market Street) within the Project area serving residents at or below 80% of Area Median Income. o The applicant has committed to constructing a minimum of three (3) Inclusionary Units, which number may be included in the 32 overall additional affordable units, within the -4- #MS-18-05 Project Area's Zone B [see below], one (1) each affordable to households having incomes at or below 80%, 100%, and 120% of Area Median Income. The Administrative Officer finds that the entire Project area shall be considered "on -site" for the purposes of Section 18.01 and that the distribution of approved and proposed inclusionary units within the Project Area meet the requirement for being "integrated among market rate units in the development." (b) Similar in architectural style and outward appearance to market rate units in the proposed development. The applicant proposes to measure and meet this inclusionary requirement separately within two distinct geographical areas within the subject property: o Zone B, encompassing all Project Area lands within the T3 and T3+ districts and a portion of the land in the T4 District to the east of Potash Brook Tributary 3. o Zone A, encompassing the balance of all Project Area lands, which lie entirely within the T4 and T4 Districts. The Building Envelope Standards for the T3/T3+ zones differ substantially from those for the T4 and T5 Zones. This reflects a City goal of establishing a transition in the built environment from the principally lower -intensity residential neighborhoods along Hinesburg Road and the higher intensity areas west of the Potash Brook approaching the future Garden Street and, further to the west, Dorset Street. In order to meet this criterion, the applicant proposes to establish two geographic zones wherein the architectural style and outward appearance standards are to be met. The Administrative Officer finds this approach acceptable, with the following conditions: Any buildings located on the north side of Market Street, within Zone B, shall be subject to the following supplemental requirements: o Buildings shall meet entrance requirements applicable to the T3/T3+ District; o Building width along Market Street shall not exceed maximum allowable in the T3/T3+ District; and, o Building height shall not exceed maximum allowable in the T3/T3+ District. The Administrative Officer finds that the division of Inclusionary Unit requirements into the Zones A and B is appropriate. (i) Inclusionary units shall be constructed with the same exterior materials and architectural design details used in market rate construction. Similar exterior amenities and landscaping shall also be provided. However, the exterior dimensions of the Inclusionary units may differ from those of the market rate units. Within Zones A and B, as described above, the applicant proposes to use the requirements of the areas' Building Envelope Standards, Open Space Requirements, and Landscaping Requirement serve as the metric of compliance with this sub -section, as supplemented above. The applicant has committed to providing a diversity of complementary housing types to satisfy a community goal of variety in architecture and types of housing while maintaining a consistent level of quality. These will include multi -family buildings, townhomes, flats, and other residential housing products. -5- #MS-18-05 The Administrative Officer notes that all of the development within the Project Area will be new construction under the Form Based Code; no pre-existing buildings exist in the Project Area. The Administrative Officer finds that within Zones A and B, compliance with the Building Envelope Standards, Open Space Requirements, and Landscaping Requirements, as supplemented by the conditions described above under subsection (c)(2)(b) of these Regulations, will be considered as having met this criterion. (H) Inclusionary units shall be no less energy efficient than market rate units; Inclusionary units may differ from market rate units with regard both to interior amenities and to gross floor area. The average (mean) gross floor area of all inclusionary units, however, shall not be less than 70% of the average (mean) gross floor area of market rate units. All new construction within the City of South Burlington are required to meet the Stretch Energy Code, pursuant to Section 3.14 of these Regulations, including those approved at 146 and 310 Market Street. In order to encourage continued enhancement of energy efficiency and in recognition that energy standards and technology may increase in the time following the construction of buildings containing Inclusionary Units at 146 and 310 Market Street, the Administrative Officer finds that future buildings containing market rate and/or Inclusionary Units may choose to exceed the stretch code without requiring the already -constructed inclusionary units to be upgraded to meet stretch code or other energy standards applicable at that future time. The Administrative Officer finds that inclusionary units may differ from market rate units with regard both to interior amenities and to gross floor area. The average (mean) gross floor area of all inclusionary units, however, shall not be less than 70% of the average (mean) gross floor area of all market rate units. Any application for any new dwelling units, or for any change in approved dwelling units that affects their gross floor area, number, or affordability within the Project Area shall require the Controlling Agent to provide an updated tally of all dwelling units in the Project Area, demonstrating continued compliance with this criterion. (iv) Inclusionary units developed as part of a single-family housing development may be accommodated in duplexes or multi family dwellings that resemble market rate single- family dwellings, as allowed within the City Center Form Based Codes District. The Administrative Officer notes that no such proposal has been made but that such a proposal would be allowable. (c) Constructed and made available for occupancy concurrently with market rate units. Buildings containing the last 10% of market rate units shall not receive certificates of occupancy until certificates of occupancy are issued for all buildings containing inclusionary units, including when the inclusionary units are provided off -site as provided for in Subsection (E)(1)(b) (Off -Site Construction) of this Article. At time of submittal of this application, two buildings within the Project area have received site plan approval. These include 84 Inclusionary Units and 15 Market Rate dwelling units, all of which are in Zone A. The applicant has proposed the following additional affordability measures: M #MS-18-05 o Commitment to construct at least additional 32 Inclusionary Units beyond the 84 presently approved, serving residents at or below 80% of Area Median Income. o Commitment to construct at least three (3) Inclusionary Units in the Project Area's Zone B, one (1) each affordable at 80%, 100%, and 120% of Area Median Income. The Administrative Officer finds these criteria met, subject to the following conditions: o No zoning permit for 41h dwelling unit in the Project Area's Zone B shall be issued prior to issuance of a zoning permit that contains one (1) unit at 100% of median income and one (1) unit at 120% of median income in the Zone B area shown on the plan. o No zoning permit for 400th dwelling unit in the Project area shall be issued prior to issuance of a zoning permit for a building that contains one (1) Inclusionary Unit serving households at or below 80% of Area Median Income within the Zone B area of the plan. o If more than 20 total dwelling units are constructed within Zone B, requirements for provision of the minimum number of inclusionary units, as described in Section C(1), shall comply with this subsection C(2)(c). D. Affordability Requirements (1) Affordability Determinations. Inclusionary units required under this section shall be affordable and marketed to income -eligible eligible households as follows [see Section 18.01(D)]: The applicant proposes to have all inclusionary units meet the standards within Section 18.01(D). The Administrative Officer finds that all dwelling units shall be tracked by the applicant or his assigns in a spreadsheet to be updated at the time of any change of affordability of a unit, change in number of units, or change in size of units. (2) Continued Affordability. An inclusionary unit shall remain affordable in perpetuity commencing from the date of initial occupancy, through a deed restriction, restrictive covenant, or through purchase by or a contractual agreement with a local, state or federal housing authority or nonprofit housing agency, to be reviewed by the City Attorney and approved by the City Manager prior to recording in the City of South Burlington Land Records. Any deed restriction, covenant or other instrument or agreement ensuring the continued affordability of inclusionary units shall include: (a) Resale Restrictions. Provisions to ensure the affordability of units offered for sale shall include a formula for limiting equity appreciation to an amount not to exceed 25% of the increase in the unit's value, as determined by the difference between fair market appraisals of the unit at the time of purchase and the time of resale, with adjustments for improvements made by the seller and the necessary costs of sale, as may be approved by the City Manager; (b) Rent Increases. Provisions to ensure the affordability of rental units shall limit annual rent increases to the percentage increase in the median household income within the Burlington -South Burlington MSA, except to the extent that further increases are made necessary by documented hardship or other unusual conditions, and shall provide that no rent increase may take effect until it has received the written approval of the City Manager; (c) Sublet Restrictions. Provisions for inclusionary rental units shall prohibit the subletting of units at rental rates that exceed affordability limits established pursuant to this section. (3) Reporting Requirements. Annually, the owner of a project that includes inclusionary rental units shall prepare and submit a report to the City Manager that lists the gross rents charged for inclusionary units and the household incomes of unit tenants, and certifies that unit affordability has been maintained as required. -7- #MS-18-05 The applicant proposes to comply with all standards. The Administrative Officer finds that annually on or before August 1, the Controlling Agent shall provide the City Manager with a report compliant with subsection (3) above. E. Developer Options (1) Options (a) and (b) below are available to developers upon request, as necessary to address documented financial hardships or physical site constraints that limit or preclude the incorporation of inclusionary units within a covered development. Options (c) and (d) are available to the developer at his or her discretion. A payment or contribution in lieu of constructing required inclusionary units shall be prohibited. (a) Dedication. The South Burlington City Council, in consultation with the entity designated by the City Council (for example, a permanent South Burlington Housing Committee or South Burlington Affordable Housing Board), may accept as an alternative to the development of inclusionary units, a dedication by the developer of equal or greater value that furthers the purposes of this section. An example might be the donation of developable land in the City Center Form Based Codes District that provides accessibility to transit, employment opportunities, and services. The applicant has not proposed this option. (b) Off -Site Construction. The developer of a covered development may comply with the requirements of this section by constructing, within two years of receiving a permit for the covered development, the required number of inclusionary units on another site within the City Center Form Based Codes District, or contracting with another entity to construct the required number of units in the City Center Form Based Codes District. The applicant has not proposed this option. (c) A developer who constructs inclusionary units having three bedrooms shall receive credit for three inclusionary units for every two three -bedroom inclusionary units constructed. (d) A developer who constructs inclusionary units having four bedrooms shall receive credit for four inclusionary units for every two four -bedroom inclusionary units constructed. The Administrative Officer finds that the applicant is eligible for options (c) and (d) but must provide this information in the tracking spreadsheet in order to be eligible to claim the additional unit credits. F. Administration and Compliance (1) Application Requirements. In addition to other submission requirements applicable to proposed projects specified within this bylaw, applications under this section shall include the following information: (a) A site or subdivision plan that identifies the number, locations, types, and sizes of inclusionary units in relation to market rate units; The Administrative Officer finds this criterion to be met for this application. Any application for any new dwelling units, or for any change in approved dwelling units that affects their gross floor area, number, or affordability within the Project Area shall require the Controlling Agent to provide an updated tally of all dwelling units in the Project Area, demonstrating continued compliance with this criterion. (b) Documentation supporting the allocation of inclusionary and market rate units, including inclusionary unit set aside calculations; -8- #MS-18-05 The Administrative Officer finds this criterion to be met for this application. Any application for any new dwelling units, or for any change in approved dwelling units that affects their gross floor area, number, or affordability within the Project Area shall require the Controlling Agent to provide an updated tally of all dwelling units in the Project Area, demonstrating continued compliance with this criterion. (c) A description of each unit's type, floor area, number of bedrooms, estimated housing costs, and other data necessary to determine unit affordability; The Administrative Officer finds this criterion to be met for this application. Any application for any new dwelling units, or for any change in approved dwelling units that affects their gross floor area, number, or affordability within the Project Area shall require the Controlling Agent to provide an updated tally of all dwelling units in the Project Area, demonstrating continued compliance with this criterion. (d) A list of proposed options, if any, to be incorporated in the plan, as provided for under Subsection (E) (Developer Options) of this Article; No such options have been proposed. (e) Documentation regarding household income eligibility; Documentation of household income eligibility shall be provided with applicable site plan applications for residential development. (f) Information regarding the long-term management of inclusionary units, including the responsible party or parties, as required to ensure continued affordability; Information regarding the long-term management of inclusionary units, including the responsible party or parties, as required to ensure continued affordability, shall be provided with applicable site plan applications for residential development. (g) Draft legal documents required under this section to ensure continued affordability; Draft legal documents required under this section to ensure continued affordability shall be provided with applicable site plan applications for residential development. (h) Construction timeline for both inclusionary and market rate units; and As discussed above, the Administrative Officer finds this criterion met. (i) Other information as requested by the Administrative Officer to determine project compliance with inclusionary zoning requirements. nFricinN Based on the above Findings of Fact, the Administrative Officer hereby approves Miscellaneous application #MS-18-05 of Snyder -Braverman Development Co., LLC subject to the following conditions: 1. All previous approvals and stipulations which are not superseded by this approval shall remain in effect. 2. This project shall be completed as shown on the plan submitted by the applicant and on file in the South Burlington Department of Planning and Zoning. #MS-18-05 3. No zoning permit for 41h dwelling unit in the Project Area's Zone B shall be issued prior to issuance of a zoning permit that contains one (1) unit at 100% of median income and one (1) unit at 120% of median income in the Zone B area shown on the plan. 4. No zoning permit for 400' dwelling unit in the Project area shall be issued prior to issuance of a zoning permit for a building that contains one (1) Inclusionary Unit serving households at or below 80% of Area Median Income within the Zone B area of the plan. 5. If more than 20 total dwelling units are constructed within Zone B, requirements for provision of the minimum number of inclusionary units, as described in Section 18.01(C)(1), shall comply with Section 18.01C(2)(c). 6. Any buildings located on the north side of Market Street within Zone B shall be subject to the following supplemental requirements: a. Buildings shall meet entrance requirements applicable to the T3/T3+ District; b. Building width along Market Street shall not exceed maximum allowable in the T3/T3+ District; and, c. Building height shall not exceed maximum allowable in the T3/T3+ District. 7. The Administrative Officer finds that the entire Project area shown in the submitted Phased Development Plan for Inclusionary Zoning shall be considered "on -site" for the purposes of Section 18.01 and that the distribution of approved and proposed inclusionary units within the Project area meet the requirement for being "integrated among market rate units in the development," 8. The Administrative Officer finds that at all times, the Project shall remain in compliance with the minimum number of inclusionary units enumerated in Section 18.01(C)(1). 9. The Administrative Officer finds that future buildings containing market rate and/or Inclusionary Units may choose to exceed the stretch code without requiring the already -constructed inclusionary units to be upgraded to meet stretch code or other energy standards applicable at that future time. 10. Any application for any new dwelling units, or for any change in approved dwelling units that affects their gross floor area, number, or affordability within the Project Area shall require the Controlling Agent to provide an updated tally of all dwelling units in the Project Area, demonstrating continued compliance with this criterion. 11. The Administrative Officer finds that all dwelling units shall be tracked by the applicant or his assigns in a spreadsheet to be updated at the time of any change of affordability of a unit, change in number of units, or change in size of units. 12. The Administrative Officer finds that annually on or before August 1, the Controlling Agent shall provide the City Manager with a report compliant with subsection (3) above. 13. The Administrative Officer finds that all dwelling units shall be tracked by the applicant or his assigns in a spreadsheet to be updated at the time of any change of affordability of a unit, change in number of units, or change in size of units. Signed this zq ll�aay of �� Itt�fgt(� 2018, by Administrative Officer -so- #MS-18-05 Please note: An appeal of this decision may be taken by filing, within 30 days of the date of this decision, a notice of appeal and the required fee by certified mail to the Superior Court, Environmental Division. See V.R.E.C.P. 5(b). A copy of the notice of appeal must also be mailed to the City of South Burlington Planning and Zoning Department at 575 Dorset Street, South Burlington, VT 05403. See V.R.E.C.P. 5(b) (4)(A). Please contact the Environmental Division at 802-828-1660 or http://vermontiudiciarV.org/GTC/environmental/default.aspx for more information on filing requirements, deadlines, fees and mailing address. The applicant or permittee retains the obligation to identify, apply for, and obtain relevant state permits for this project. Call 802.477.2241 to speak with the regional Permit Specialist. -11-