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Agenda 10/11/2018 S11 'ane Valle K Y Spokane Valley Planning Commission Regular Meeting Agenda City Hall Council Chambers, 10210 E. Sprague Ave. October 11, 2018 6:00 p.m. I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. APPROVAL OF AGENDA V. APPROVAL OF MINUTES: September 27, 2018 VI. COMMISSION REPORTS VII. ADMINISTRATIVE REPORT VIII. PUBLIC COMMENT: On any subject which is not on the agenda. IX. COMMISSION BUSINESS: i. Findings of Fact: CTA-2018-0003, A proposed amendment to Spokane Valley Municipal Code 19.65.020 X. FOR THE GOOD OF THE ORDER XI. ADJOURNMENT CITY OF SPOKANE VALLEY Request for Planning Commission Action Meeting Date: October 11, 2018 Item: Check all that apply nold business Fl new business Fl public hearing n information n study session n pending legislation FILE NUMBER: CTA-2018-0003 AGENDA ITEM TITLE: Findings & Recommendation - Amendment to the Spokane Valley Municipal Code (SVMC) DESCRIPTION OF PROPOSAL: The proposed amendment is a City-initiated text amendment to SVMC 19.70.050 and SVMC Appendix A to modify the criteria that determines if open space is required for multi-family and mixed-use development projects. GOVERNING LEGISLATION: SVMC 17.80.150, SVMC 19.30.040 and 19.70.050; and RCW 36.70A.106 Previous Planning Commission Action Taken: Open Space requirements for residential projects in mixed use zones were discussed and considered at the following Planning Commission meetings: March 8, 2018 Study Session; March 22, 2018 Study Session; April 26, 2018 Study Session; June 14, 2018 Discussion; and July 12, 2018 Discussion. Following the discussions on the open space requirements, an amendment to the SVMC was formulated for consideration and approval. A Study Session on the proposed text amendment was conducted at the September 13,2018 meeting BACKGROUND: The Planning Commission conducted a Public Hearing on the proposed amendment at the September 27, 2018 meeting. Arthur Whitten,representing the Spokane Homebuilders Association provided public testimony at the hearing. Mr. Whitten requested the Planning Commission retain the existing language that provides an open space exemption for multi-family or mixed use projects with less than ten dwelling units. Following public testimony,the Planning Commission discussed whether to retain the language stricken as part of the amendment that allows the open space exemption for multi-family or mixed use development projects with less than ten dwelling units. The Commission decided the mixed use zones are intended for community-oriented, mixed use development and the open space exemption would encourage and provide an incentive for multi-family development. The Multi-family Residential (MFR) zone provides opportunity for multi-family residential development and the open space exemption should not be allowed in the mixed use zones. The Planning Commission decided the language should remain stricken. The Planning Commission passed a motion with a 5-2 vote to forward the amendment to City Council as proposed with no changes. RECOMMENDED ACTION OR MOTION: Approve the Planning Commission Findings and Recommendation for CTA-2018-0003 or provide staff further direction. STAFF CONTACT: Martin Palaniuk,Planner ATTACHMENTS: 1. Draft Amendment 19.70.050 and Appendix A 2. Staff Report CTA-2018-0003 3. PC Findings and Recommendation CTA-2018-0003 RPCA Findings&Recommendation for CTA-2018-0003 Page 1 of 1 Draft Language Draft Language— Version 2(as directed at the 7-12-2018 PC Meeting) 19.70.050 Additional standards. G. In mixed-use zoning districts,projects with multi-family residential components shall provide 210 square feet of open space per dwelling unit conforming to the requirements of SVMC 19.70.050(F) and eligible for reduction for improvements on the same basis;provided,that: 1. The requirement does not apply to the development of less than 10 new dwelling units; 2.Additional oOpen space is not required for residential development located within 1,300 feet of a public park or public trail;mor 3.-. Open space is not required for projects where all ground floor units,or an entire floor on any level within a building will be occupied by non-residential permitted uses, and residential uses are located in the remainder of the building; or where 25% or more of the total building area will be occupied by non-residential permitted uses,with the remainder occupied by residential uses; or where residential and non-residential permitted uses are combined on a parcel,or functionally integrated as part of a complex of related structures in a development where the non-residential uses equal 25%or more of the total development building areas.A fee in lieu of land dedication may bo assessed for the development of public parks and open spaces to meet the needs of the residents of the mixed use zoning districts. Council will determine this assessment and review it on an annual be4s. 4.No parking areas,whether commercial,private,or public,covered or non-covered,may be considered a non-residential use for the purpose of being classified as a mixed use development as defined in Appendix A. Attachment A—SVMC 19.70.050 Additional Standards Draft for Discussion Draft Language Appendix A: Definitions Mixed Use: Development with two or more different land uses combined in a single development project. Mixed-use development can be either vertical or horizontally mixed, and could include employment uses such as office,retail, community, or cultural facilities, along with higher density residential uses. Attachment A—SVMC 19.70.050 Additional Standards Draft for Discussion COMMUNITY AND PUBLIC WORKS f BUILDING&PLANNING SipokCrrYoane �L`111E STAFF REPORT AND RECOMMENDATION TO THE PLANNING COMMISSION CTA-2018-0003 STAFF REPORT DATE: September 6,2018 HEARING DATE AND LOCATION: September 20,2018,beginning at 6:00 p.m., Spokane Valley City Hall Council Chambers, 10210 East Sprague Avenue, Spokane Valley,Washington 99206. PROPOSAL DESCRIPTION: The proposed amendment is a City-initiated text amendment to the Spokane Valley Municipal Code(SVMC) 19.70.050 and SVMC Appendix A. The proposed amendment will require any multi-family development in mixed use zones to provide open space regardless of the number of units; eliminate a fee in lieu of land dedication provision; add "public trail" to the exemption that if the development is located within 1,300 feet of a public park or public trail open space is not required; add language to identify what form mixed use must take within a development to be exempt from the open space requirement; and stipulate that commercial parking cannot be considered a nonresidential land use in order to be considered a mixed use. Additionally,the amendment will add a definition for"mixed use"in Appendix A. APPROVAL CRITERIA: Spokane Valley Comprehensive Plan, SVMC 17.80.150, 19.30.040. SUMMARY OF CONCLUSIONS: Staff concludes that the proposed amendments to SVMC 19.70.050 and SVMC Appendix A are consistent with minimum criteria for review and approval, and consistent with the goals and policies of the Comprehensive Plan. STAFF CONTACT:Martin Palaniuk,Planner and Lori Barlow,AICP, Senior Planner ATTACHMENTS: Exhibit 1: Proposed Text Amendment Language Exhibit 2: Presentation BACKGROUND INFORMATION 1. APPLICATION PROCESSING: SVMC Chapter 17.80, Permit Processing Procedures. The following table summarizes the procedural steps for the proposal. Process Date Depaitnient of Commerce 60-day Notice of Intent to August 10,2018 Adopt Amendment SEPA—DNS Issued August 24,2018 Published Notice of Public Hearing: August 31 & September 8,2018 PROPOSAL BACKGROUND: The Spokane Valley City Council referred the Mixed Use Zone open space requirements to the Planning Commission to review. City Council directed the Planning Commission to consider whether the open space requirements are necessary and whether properties in mixed use zones are disadvantaged by the requirements. These open space requirements have been a part of the SVMC since Staff Report and Recommendation CTA-2018-0003 their initial adoption in 2007. In March 2018, the Planning Commission began discussion on the open space requirements and the possible changes to the requirements. The current requirement for open space in a mixed use zone is that any development with residential units shall provide 210 square feet per unit except when the following conditions are present: • If the project is less than 10 dwelling units. • If the project location is within 1,300 feet from public parks ;or • A developer may request a fee in lieu of land designation to be accessed rather than having open space. Council has the authority to determine what this assessment is and review it on an annual basis. The Commission considered the mixed use zone open space requirements during a series of five meetings prior to developing the draft language proposed. Discussion of the requirements considered where the current 210 square feet open space requirement originated, what is the City process for collecting and administering fees in lieu of open space,whether recent projects have provided open space when it wasn't required, and the open space requirements of surrounding jurisdictions. After lengthy discussion and consideration the Planning Commission directed staff to develop language that would: 1. Eliminate the open space exemption for multi-family or mixed use development of less than 10 new dwellings; 2. Include"public trail"when eliminating the open space requirement for development located within 1300 feet of a public park; 3. Add the following language to identify what form mixed use must take within a development in order to be exempt from the open space requirement: Open space is not required for multi-family development where all ground floor units, or an entire floor will be occupied by non-residential uses,or where 25 percent or more of the total building area will be non-residential uses, or where non-residential uses are 25 percent or more of the total building area of an integrated development. 4. Specify that parking areas shall not be considered a non-residential use for the purpose of classifying a project as mixed use; 5. Eliminate the fee in lieu of open space land dedication; and 6. Add a definition for"Mixed use"to the definitions. Staff has developed the attached draft language for the open space requirements per the Planning Commission direction. Analysis: The Washington State Growth Management Act (GMA) adopted thirteen planning goals to guide the development of comprehensive plans and development regulations. Among the goals is the open space and recreation goal to retain open spaces,enhance recreational opportunities,conserve fish and wildlife habitat, increase access to natural resource lands and water, and develop parks and recreation facilities. To further that goal, GMA requires all City's planning under the act to include a Land Use element as part of its comprehensive plan. The land use element must designate the proposed general distribution,the location, and the extent of the uses of land including open spaces. The City of Spokane Valley Comprehensive plan addresses open spaces in the Parks,Recreation and Open Space element of the comprehensive plan. Among the goals for this element is to plan for access to parks, trails, and other open spaces in all neighborhoods. The City does that through the Parks and Recreation Master Plan (PRMP). A number of studies have shown that open spaces within and in close proximity to urban centers increases livability and enhances property values. According to multiple published articles on green space and health, the mental and physical health benefits of parks and open spaces have been demonstrated to impact positively on health care. Studies have also shown that urban green spaces can offset the effect of air pollution by providing cooler,cleaner air. Open space is essential to leisure activities, organized sports and cultural endeavors. Page 2 of 5 Staff Report and Recommendation CTA-2018-0003 In addition to providing for open space through the PRMP, the City provides for open space through the application of development regulations. SVMC Title 19 is the primary development regulation. Open space in single-family neighborhoods is generally provided through the application of mandatory building setbacks which create private open space areas or yards. Multi-family residential development in a Multi-family Residential(MFR)zone is treated differently than single-family development when it comes to the open space needs and setback requirements. Multi-family residential development is defined as three or more dwellings within a single structure. Multi-family development is typically vertical in nature and usually includes stacked dwellings. The yards that are created through the application of setbacks do not provide the usable open space needs required for the number of people residing in the building. Open spaces, such as recreational facilities, play areas, and swimming pools provide a health benefit to the residents,particularly children. Common areas provide an opportunity for social interaction with neighbors. To provide those open space needs multi-family development is required to dedicate 10 percent of the gross area to open space. Multi-family residential development is also a permitted use in the Corridor Mixed Use(CMU)and Mixed Use (MU) zones. However,mixed use development with residential components in these zones is subject to a different open space requirement than in the MFR zone. Mixed use development is much different in form than single-family and multi-family residential development. As defined by the MRSC of Washington, mixed-use development is characterized as pedestrian-friendly development that blends two or more residential, commercial, cultural, institutional, and/or industrial uses. Mixed use development fosters integration,density,and compatibility of land uses, and creates a walkable community with uninterrupted pedestrian connections. Commercial, residential, and in some instances, light industrial fit together to help create built environments where residents can live,work,and play. By its nature,the open space needs for the residents within a mixed use development are accommodated by the development itself. Within Spokane Valley the mixed use zones are generally found along the major transit corridors. The open space standards for residential development in mixed use zones are different than the standards for residential development in the multi-family zone. Under the current regulation,any project in a mixed use zone with a multi-family component must provide 210 square feet of open space per dwelling unit. The open space requirement does not apply to developments with less than ten new dwelling units or for developments that are within 1,300 feet of a public park. In addition to those exceptions,a development may pay a fee in lieu of dedicating the required open space. Note: the fee in lieu of dedication exception has never been utilized. The proposed amendment considers that the open space needs within a mixed use development are different than in a residential development. Open space needs in mixed use developments are generally market- driven and depend on the needs and the nature of the mix of uses within the project. Private developers must respond to the needs of the consumers who will work and live in the mixed use development. The open space needs in a mixed use development can often be met through the use of public parks and open space systems located within the vicinity. This access to parks and trails can be included in the design of the mixed use project to serve the open space needs of the residents. In Spokane Valley, access to a public park or trail is nearby in the majority of the mixed use zones. Approximately 60 percent of the lands that are zoned mixed use and allow multi-family development are located within 1300 feet of a park or a trail;fifty percent of the Corridor Mixed Use(CMU)and eighty-five percent of the Mixed Use (MU) lands. Generally, the CMU lands have been designated along Sprague Avenue and the major north/south arterials such as Argonne Road and Pines Road. These arterial corridors have historically developed with commercial uses and are served by major transportation and infrastructure amenities. The MU lands are generally located along the Spokane River in the Mirabeau Park and Coyote Rock areas. Centennial Trail lies adjacent to the Spokane River and traverses from the east boundary of the City to the west boundary. Combined,Mirabeau Park and Centennial Trail are within 1300 feet of all the MU zoned property within the City with the exception of approximately 40 acres located at 8th Avenue and Carnahan Road. Appleway Trail is located one block south of Sprague Avenue and traverses from Page 3 of 5 Staff Report and Recommendation CTA-2018-0003 University Road to the east boundary of the City. All of the CMU property located along Sprague Avenue from University Road to Hodges Road is with 1300 feet of the Appleway Trail. Access to open space is available within 1,300 feet for a majority of the lands that have been zoned for mixed use development in Spokane Valley. The proposed change to the open space requirement responds to the availability of open space through the park and trail systems,and to the differing open space needs for mixed use development. Access to existing public trails and public parks will serve to meet the open space needs of a mixed use project in the MU and CMU zones. The open space needs of a mixed use land use are different than the needs of a residential land use and eliminating the open space requirements for projects with a residential and non-residential component is appropriate in these zones. Parking areas do not meet the open space needs of mixed use developments and should not be considered a non-residential use for the sake of classifying a project as mixed use. The proposed change recognizes that the open space needs in a mixed use environment are development driven and are already adequately served by existing facilities in the mixed use zones. The amendment will properly provide for open space needs in the instances where that need is not properly served by the development or by existing open space facilities. A. FINDINGS AND CONCLUSIONS SPECIFIC TO THE MUNICIPAL CODE TEXT AMENDMENT 1. Compliance with Title 17(General Provisions) of the Spokane Valley Municipal Code a. Findings: SVMC 17.80.150(F)Municipal Code Text Amendment Approval Criteria i. The City may approve Municipal Code Text amendment,if it finds that (1) The proposed text amendment is consistent with the applicable provisions of the Comprehensive Plan; Staff Analysis: The proposed amendment is supported by the Comprehensive Plan and is consistent with the following goals and policies: Goal ED-G3: Balance economic development with community development priorities and fiscal sustainability; Goal LU-G3: Support the transformation of commercial, industrial, and mixed—use areas into accessible districts that attract economic activity; Goal LU-G4: Ensure that land use plans, regulations, review processes, and infrastructure improvements support economic growth and vitality. Policy LU-P9: Provide supportive regulations for new and innovative development types on commercial,industrial,and mixed use land. Policy LU-P13: Work collaboratively with landowners and developers that seek to provide mixed-use residential projects; Policy LU-P16: Maximize the density of development along major transit corridors and near transit centers and commercial areas; Goal P-G1: Develop, grow, and maintain a diverse and accessible park, recreation, trail,and open space system that enhances community character; Policy P-P8: Plan for access to parks, trails, and other open spaces in all neighborhoods. (2) The proposed amendment bears a substantial relation to public health, safety, welfare,and protection of the environment; Staff Analysis: The amendment bears substantial relation to public health, safety, welfare and protection of the environment. The amendment will require open space Page 4of5 Staff Report and Recommendation CTA-2018-0003 for all development with a residential component in the mixed use zones regardless of how many dwelling units are included in the project unless they are within 1300 feet of a public park or trail. Access to the parks,trails, and open space systems that have been created as part of the City's Parks and Recreation Master Plan will serve the open space needs of a majority of the mixed use lands within the City. The proposed amendment continues to require open space for those lands that are not served by those systems. b. Conclusion(s): The proposed text amendment is consistent with the approval criteria contained in the SVMC 17.80.150(F). 2. Finding and Conclusions Specific to Public Comments a. Findings: No public comments have been received to date. b. Conclusion(s): Adequate public noticing was conducted for CTA-2018-0003 in accordance with adopted public noticing procedures. 3. Finding and Conclusions Specific to Agency Comments a. Findings: No substantive agency comments have been received to date. b. Conclusion(s): In the absence of substantive agency comments,no concerns were noted. B. CONCLUSION For the reasons set forth in Section A the proposed code text amendment to change the open space requirements for mixed use development in the Mixed Use and Corridor Mixed Use zones is consistent with the requirements of SVMC 17.80.150(F) and the Comprehensive Plan. Page 5 of 5 FINDINGS AND RECOMMENDATIONS OF THE SPOKANE VALLEY PLANNING COMMISSION CTA-2018-0003—Proposed Amendment to Spokane Valley Municipal Code (SVMC) Pursuant to SVMC 17.80.150(E) the Planning Commission shall consider the proposal and shall prepare and forward a recommendation to the City Council following the public hearing. The following findings are consistent with the Planning Commission recommendation that City Council adopt the amendment. Background: 1. Pursuant to RCW 36.70A.130, Spokane Valley adopted its 2016 Comprehensive Plan Update and updated development regulations on December 13,2016,with December 28,2016 as the effective date. 2. CTA-2018-0003 is a City-initiated text amendment to the SVMC 19.70.050 and SVMC Appendix A. The proposed amendment will require all multi-family development in mixed use zones to provide open space regardless of the number of units;eliminate a fee in lieu of land dedication provision; add"public trail" to the exemption that if the development is located within 1,300 feet of a public park or public trail open space is not required; add language to identify what form mixed use must take within a development to be exempt from the open space requirement; and stipulate that commercial parking cannot be considered a nonresidential land use in order to meet the definition of a mixed use. Additionally,the amendment will add a definition for"mixed use"in Appendix A. 3. The Planning Commission held a properly noticed public hearing and conducted deliberations on September 27, 2018. The Commissioners voted 5-2 to recommend that the City Council adopt the amendment using the proposed language. Planning Commission Findings: 1. Compliance with SVMC 17.80.150(F)Approval Criteria a. The proposed text amendment is consistent with the applicable provisions of the Comprehensive Plan. Findings: The proposed amendment is supported by the Comprehensive Plan and is consistent with the following goals and policies: Goal ED-G3: Balance economic development with community development priorities and fiscal sustainability; Goal LU-G3: Support the transformation of commercial, industrial, and mixed —use areas into accessible districts that attract economic activity; Goal LU-G4: Ensure that land use plans, regulations, review processes, and infrastructure improvements support economic growth and vitality. Policy LU-P9: Provide supportive regulations for new and innovative development types on commercial,industrial,and mixed use land. Policy LU-P13: Work collaboratively with landowners and developers that seek to provide mixed-use residential projects; Policy LU-P16: Maximize the density of development along major transit corridors and near transit centers and commercial areas; Goal P-G1: Develop, grow, and maintain a diverse and accessible park, recreation, trail, and open space system that enhances community character; Policy P-P8: Plan for access to parks,trails, and other open spaces in all neighborhoods. Findings and Recommendations of the Spokane Valley Planning Commission CTA-2018-0003 Page 1 of 2 b. The proposed amendment bears a substantial relation to public health, safety,welfare and protection of the environment. Findings: The amendment bears substantial relation to public health, safety,welfare and protection of the environment. The amendment will require open space for all development with a residential component in the mixed use zones regardless of how many dwelling units are included in the project unless they are within 1300 feet of a public park or trail. Access to the parks,trails, and open space systems that have been created as part of the City's Parks and Recreation Master Plan will serve the open space needs of a majority of the mixed use lands within the City. The proposed amendment continues to require open space for those lands that are not served by those systems. Conclusion: The proposed text amendment is consistent with Comprehensive Plan and bears a substantial relation to public health, safety,welfare, and protection of the environment. 2. Recommendation: The Spokane Valley Planning Commission therefore recommends the City Council approve CTA-2018- 0003 as proposed. Attachments: Exhibit 1 —Proposed Amendment CTA-2018-0002 Approved this 11th day of October,2018 Planning Commission Chairman ATTEST Deanna Horton,Administrative Assistant Findings and Recommendations of the Spokane Valley Planning Commission CTA-2018-0003 Page 2 of 2