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PC APPROVED Minutes 04-28-16 APPROVED Minutes Spokane Valley Planning Commission Council Chambers—City Hall, April 28,2016 Chair Graham called the meeting to order at 6:03 p.m. Commissioners, staff and audience stood for the pledge of allegiance. Administrative Assistant Deanna Horton took roll and the following members and staff were present: Kevin Anderson Lori Barlow, Senior Planner Heather Graham Mike Basinger,Economic Development Coordinator James Johnson Tim Kelley Mike Phillips Suzanne Stathos Joe Stoy Deanna Horton, Secretary of the Commission Commissioner Stoy moved to accept the April 28, 2016 agenda as presented. The vote on the motion was seven in favor, zero against and the motion passed. Commissioner Anderson moved to approve the April 14, 2016 minutes as they were presented. The vote on the motion was seven in favor, zero against, and the motion passed. Commissioner Johnson clarified the SEPA determination would not need to change due to Planning Commission's recommended changes after the public hearing on CTA-2015-0006 Marijuana regulations. COMMISSION REPORTS: Commissioner Johnson reported he attended a Department of Commerce Short Course in Planning. ADMINISTRATIVE REPORT: Senior Planner Lori Barlow reminded the Planning Commission of the joint study session scheduled for May 3, 2016 between the City Council and the Planning Commission to discuss draft goals and polices and land use alternatives which could be included in the City's Comprehensive Plan. PUBLIC COMMENT: There were no public comments. COMMISSION BUSINESS: Study Session: Comprehensive Plan Existing Conditions Report Senior Planner Lori Barlow explained these reports are intended to provide background information for the study session next week with the City Council regarding the Comprehensive Plan Update. As the City began the update, one of the first exercises was to review the Community's vision for the City. Next Ms. Barlow explained the City was required to have a population allocation from Spokane County in order to plan for growth. The City would be using a number which had been developed through an extensive process by the Planning Technical Advisory Committee (PTAC). The PTAC makes a recommended population allocation to the Steering Committee of Elected Officials (SCEO). The SCEO reviews the recommendation and forwards it to the Board of County Commissioners (BoCC). The BoCC ultimately has the authority to determine the allocation to each jurisdiction. The PTAC and the SCEO have recommended the 2037 Office of Financial Management's(OFM)medium population forecast number. This recommendation was forwarded to the BoCC on November 4,2015. The City is using this forecast number of 14,650 for the next 20 years growth. Commissioner Anderson asked if the numbers were similar to numbers used in 2006. Ms. Barlow said during each update process the numbers are reviewed and a process is undertaken to review the numbers issued by the OFM and determine if this is an adequate number to plan for. The process could come up with a growth number similar to the numbers generated in 2006. Existing Conditions Housing and Economic Trends — Ms. Barlow covered the major points of the Report: Population/Demographic Trends: • Steady population growth, 1%annually 04-28-16 Planning Commission Minutes Page 2 of 5 • City has a higher percentage of people over the age of 65. Average age is 39.8 vs the County at 37.2 • Less City residents have higher education levels than those of the County at 21%vs 28% • City's median household income is less than County$48,000 vs $49,200 Housing trends: • Modest housing growth • Characteristics are changing o More multifamily is being built than single family o Number of renters is increasing o Average household size is decreasing o Percentage of households with children is decreasing • 36%of all households pay more than 30% of their income on There was discussion among the Commissioners and staff regarding the changing trends for housing. Why is more multifamily housing being built? Are fewer homes available to buy or is it that people don't want the hassle of owning a home? Can the millennials afford a single family home or do they want to? The changing demographics of the City's population,trending to older empty nesters, some don't want to deal with a large home any longer. Economic Trends • Service based economy providing commercial, providing commercial, professional, and retail services. • City economy has been slower to recover from the recession • Regional Commercial and Corridor Mixed Use zones realized the largest decrease in sale during the recession o In 2007 the Regional Commercial zone produced 43%of the taxable retail sales(TRS) o In 2013 the Regional Commercial zone produced 40% of the TRS o 2004-2014 TRS in the Mixed Use Center zone have doubled Land Use Summary • 50% of all the City's land use is single family housing o 90%of all residential zoned land is single family o 10%of all residential land is zoned multifamily • The City has approximately 3,000 acres of vacant land, which is predominately located in the northeast part of the City Development Trends • Residential Development: There has an increase in multifamily housing construction to meet demand—the City has a vacancy rate of 4% o Most multifamily construction is locating in Mixed Use Center and Corridor Mixed Use zones o Only one project was built in a MF-1 zone o No multifamily projects have been built on Sprague o This generally indicates the demand for housing types is changing • Commercial Development: o Retail sales recently recovered to pre-recession levels o Demand for commercial properties is weak • Office space vacancy rate is over 20% • Retail vacancy rate is improving— 10% in 2012 to 6% presently o Indicates an oversupply of office space • Buildable Residential Land: Almost 70% of buildable residential land is zoned single family, 11%multifamily, 19%Mixed Use. This does not consider land size or distribution for ease of aggregation. 04-28-16 Planning Commission Minutes Page 3 of 5 • Buildable Commercial and Industrial Land: Spokane Valley lacks small scale, neighborhood oriented commercial areas within walking distance to many of the residential areas. o Limited new industrial development o Vacancies have decreased from 20%to 10% o Indicates at some point new space many need to be developed The consultants were asked to look at some of the City's current zoning issues and come up with possible solutions for these issues. • Medium Density Residential Zoning o Problem: The MF-1 zone has not had multifamily development since 2012 • One permit in the MF-1 zone since 2012,while almost 300 units built per year in other zones. • City has heard multifamily projects are not feasible in this zone o Conclusions: Density limit is too low to make development feasible at current rent levels and development costs • Multifamily tax exemptions for medium density housing types • Allow other housing types that are less expensive to construct • Adjust setbacks, lot width,development standards, etc. • Mixed Use Development o Problem: Corridor Mixed Use (CMU) has not realized adequate levels of new development along Sprague and Trent • Mixed Use is typically a vertical development with multifamily units on upper story and retail on the ground floor o Conclusions: Lack of redevelopment is due to project economies • Anticipated rents do not support vertical development • Not an issue with zone regulations • Trent more affected than Sprague due to the lower land values, proximity to industrial uses and railroad tracks,and distance from Interstate-90(I-90),can't be as competitive as other locations. • Consider multifamily tax exemptions • Adjust setbacks, lot width,development standards, etc. • Office Zone o Problem: Recent office development is happening outside of the City's two office zones around I-90 and in the Mixed Use Corridor zone. Areas with good visibility and large vacant tracts of land • Office zones have seen little office development since 2004 • Zones are concentrated along Argonne, Pines and Evergreen Corridors • Zones have a mixture of uses, retail and single family • Parcel sizes are less than 0.75 acres, which makes them hard to assemble for sizable new development. o Conclusions: • Typical small office building since 2004 had at least 20,000 square feet and parking • Generally office development requires a minimum site of 35,000 square feet or more for a new project • Office and Garden Office zones have few adequate sized sites which are vacant or can be redeveloped • Mixed Use Center and other areas close to I-90 are better suited to office development • Allow more uses in the Office zone • Medical office uses may see a demand linked to aging population • Vacant areas in the Office and Garden Office are along major corridors and may be suitable for multifamily • Consider more opportunity for residential uses 04-28-16 Planning Commission Minutes Page 4 of 5 • Consider rezones accordingly • Neighborhood Commercial zoning — Can the City develop small scale retail uses in neighborhoods o Problem: City lacks small-scale neighborhood-oriented commercial areas within walking distance of residential neighborhoods • Small local business support a vibrant retail market and creates community character o Conclusions: Limited vacant sites at major intersections to support small scale retail development • Residential areas surrounding sites are low density—not enough population to support retail • Proforma analysis indicated vertical mixed-use not feasible • Consider rezone vacant parcels to neighborhood commercial • Consider rezone intersections as Neighborhood Commercial for redevelopment • Review parking requirements for Neighborhood Commercial uses • Consider rezones accordingly The transportation existing conditions were covered briefly. It compares where the residential land is compared to where people travel to work. The report highlights how people get to work: Approximately 40,000 commute into the City for work, about 23,000 leave the City and 14,000 live and work here. Of the people commuting to work, 80% of them drive alone. • Challenges: o Many residential streets do not have curb, gutter, or sidewalks — could benefit from enhancements o Long blocks and high traffic speeds make it difficult to cross major streets—impedes transit use,walking/biking, etc. o Transit service is minimal in parts of the Valley, requiring that people drive to reach destination o The regions position on major freight rail corridor increase risk of train delays caused by at-grade-crossings o Unattractive streetscape, lack of gateway features, and public spaces on side of streets • Opportunities: o Streets in good repair—allow opportunities to invest in other city priorities o Good Traffic Level of Service o Grid system can support a considerable amount of additional economic development o Good connections to freeway and railway network support economic development opportunities o Strong pedestrian/bicycle plan that is expanding the trail network with regional and federal funding. Ms.Barlow said the next touches on the Comprehensive Plan elements would be the joint meeting with the City Council on May 3, a retail and tourism study update on May 12, water resource inventory on May 26 and an overview on tiny houses on June 16. This schedule is subject to change depending on other matters which may need to come before the Commission. Commissioner Stoy confirmed the second public hearing for the marijuana regulations was scheduled for May 12, 2016. B. Study Session: Comprehensive Plan Focus Areas Economic Development Coordinator Mike Basinger explained this would be a primer for the joint meeting with the City Council. The intent is to have a lean,understandable document. The City would like to incorporate its economic development initiatives into the plan. Staff would like to make sure that the Community's vision is incorporated into the plan as well as the priorities of the Commission and the City Council. One of the points of the exercise at the joint meeting will be to determine if the 04-28-16 Planning Commission Minutes Page 5 of 5 focus areas adequately reflect the Council/Commission/Community priorities and determine if anything is missing. The focus areas are not meant to be all encompassing. Mr.Basinger covered each element and touched on the community and economic development priorities. Commissioner Stoy asked if the City had the ability to annex land. Mr. Basinger said the City could annex any land in the City's UGA (Urban Growth Area). He also said there are some areas which are between two jurisdictions which require joint planning,but expansion would likely occur north or south of the City. Each topic is an element of the Comprehensive Plan. There are required elements as well as some which are options. Mr. Basinger explained on each page there are community priorities, economic development priorities and best practices for each element. The community priorities have come from the many outreach efforts to engage the community in the process of developing the direction of the Comprehensive Plan. The economic development priorities have been developed through studies the City has engaged in to guide our economic development efforts. There are state requirements which must be included, and best practice options which the Commissioners and Council can consider. GOOD OF THE ORDER: There was nothing for the good of the order. ADJOURNMENT: Commissioner Stoy moved to adjourn the meeting at 7:50 p.m. The vote on the motion was unanimous in favor,motion passed. J'66)121A_D 4)-44, /2-qi Chair Heather Graham Date signed Secretary Deanna Horton