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HomeMy WebLinkAboutWork Session - Transfer Density RightsCity of Iowa City City Council Work Session September 4, 2018 Background • May 29: • Council considered local landmark designation of 410-412 N. Clinton Street • Deferred to January 2019 and directed staff to explore the creation of a city-wide TDR program • August 7: • Council discussed initial memo on TDR at work session • September 4: • Direction from City Council on key policy questions September 4 — Council Work Session Goals • Direction from Council on the following: • Eligible sending sites • Transfer formula • Priority of preserving historic resources compared to other public benefits • Review and approval process for transfers • Eligible receiving sites Staff Goals of a City-wide TDR Program • Fair • Legally -sound • Easy to administer • Simple for developers and members of the public to understand • Effective program that preserves historic resources • Consistent with comprehensive plan Transfer of Development Rights • Incentivize protection of historic resources • Property owners can sell/ transfer development rights from historic resource (sending site) • Development rights applied to another site where development can occur at a higher density (receiving site) TDR Example —Tate Arms, 916 S. Dubuque St. Sending Site: Tate Arms, 914 S. Dubuque St. Total Dev. Rights: 34,800 sq. ft. RFC Transfer Formula • No. of stories allowed on sending site (4) X Area of sending site (8,700 sq. ft.) Development Rights Available for Transfer (34,800 sq. ft.) TDR Example —Tate Arm Sending Site: Tate Arms, 914 S. Dubuque St Ir 1' MW r r 't ii 34,800 sq. ft 27,400 sq. ft. -------------------- ------ ----- - - ---------------- Total ----- -Total Dev. Rights: 34,800 sq. ft. Dev. Rights Remaining: 27,400 sq. ft. s, 916 S. Dubuque St. Receiving Site: 912 S. Dubuque St. 1,13 7,400 sq. ft. v ------------ ------- -- - �W oaa a9 I Dev. Rights Transferred: 7,400 sq. ft. Research & Analysis Sending Sites • Only analyzed existing local and national landmarks • Several other buildings eligible for local landmark designation • HPC proactively identifying sites to locally landmark • Used the RFC Transfer Formula: No. of stories X Area of sending site Development Transfer Potential Research & Analysis Receiving Sites • Identified vacant and underutilized sites • Removed sites within floodplains, sites with historic buildings, publicly zoned land Research & Analysis Summary of Sending & Receiving Sites Analysis • Significant amount of transfer potential — will increase as more properties are locally landmarked • Depending on receiving sites identified it may be difficult to accommodate transfer potential Research & Analysis Other Local Jurisdictions' Program • Transfer Formulas: • Consider existing development on sending site • Typical formula = Max allowable density/intensity on sending site Less Existing density/intensity on sending site • Incorporate a receiving site bonus above that allows development beyond plan/zoning • In comparison, the RFC transfer does not consider existing development Research & Analysis Other Local Jurisdictions' Program • Approval Process for Transfers: • Many cities require some type of a non -administrative review • Some cities approve transfers administratively Research & Analysis Other Local Jurisdictions' Program • Administration & Tracking: • Variety of methods: • Documented through a PUD or Specific/Master Plan • Executed through a development agreement • Recorded with the County as a conservation easement • Legal documents signed by property owners & City Attorney • Tracking • City staff maintained registries and databases of possible receiving sites, eligible sites, capacity of these sites Research & Analysis Other Local Jurisdictions' Program — Approval Process • Receiving Areas: • Several programs focus receiving sites in the core of the community/downtown • Explicitly state that historic resources are not eligible as receiving sites • Place burden on the applicant to demonstrate the appropriateness of a potential receiving site • Commercial zones only— no transfers allows to residential zones Issues/Constraints • Market Potential: • No market study • Lack of Certainty in the Process: • Non -administrative review of transfer (e.g. P&Z, City Council, etc.) provides less certainty • Administrative review of transfer (i.e. staff -level) provides more certainty • Other Bonus Mechanisms: • City currently offers bonuses for other public benefits • Uncertain how a city-wide TDR policy would compare to other bonuses Policy Questions for City Council 1. Should eligible sending sites include existing local historic landmarks or only future local historic landmarks? Option a. Eligible sending sites include existing & future local historic landmarks. Option b. Eligible sending sites only include future local historic landmarks. Policy Questions for City Council 2. Should a city-wide TDR ordinance apply the existing transfer calculation formula that is outlined in RFC or a new formula? Option a. Keep the existing RFC transfer formula. Option b. Establish a new transfer formula that considers existing development. Policy Questions for City Council 3. The City already gives bonuses for certain public benefits provided with development projects. Should preservation of historic resources be treated in a similar manner or given higher priority? Option a. Model a city-wide TDR program on the current bonus provisions. Option b. Allow transfer for historic properties to exceed the City's current bonus provisions (e.g. offer more height, more density/intensity? Policy Questions for City Council 4. What type of process should be established for the review and approval of sending and receiving transfer of development rights? Option a. Keep the existing Riverfront Crossings review and approval procedure by the City Council. Option b. Establish anew procedure that allows transfer up to a certain level to be approved administratively. Any transfers beyond an identified threshold would be reviewed by City Council. b. Downtown and/or 5. Eligible receiving sites? c. South Johnson /Van Buren area and/or d. Multi -unit sites throughoutthe city and/or e. Other sites a. Existing & future Local Landmarks 1. Eligible sending sites? Fair & Consistent / May not have adequate receiving site capacity b. Only future Local Landmarks • May be easier to accommodate transfers / Inconsistent with current process a. RFC transfer formula • More generous & consistency in administration; easier to understand 2. Transfer formula? May not have adequate receiving site capacity b. New transfer formula • Maybe easier to accommodate transfers/ More complex & difficult to administer 3. Bonuses & Priority of preserving a. Current bonus provisions historic resources compared to other Simpler & easier / May dilute effectiveness of preserving historic resources public benefits? b. Exceed current bonus provisions • More of an incentive/ Community concerns & unknown impacts a. Existing RFC process (i.e. approval by City Council) 4. Review & approval process for Simpler & consistent / Lack of certainty in approvals transfers? b. New process • Streamline the review & allow Council review for larger transfers • Not consistent with current RFC process a. RFC b. Downtown and/or 5. Eligible receiving sites? c. South Johnson /Van Buren area and/or d. Multi -unit sites throughoutthe city and/or e. Other sites June -August 2018 Research and analysis September 4, 2018 Presentation to Council on research; recommendation from Council to proceed or not proceed on ordinance drafting September — October 2018 Ordinance drafting; if determined by Council October 11. 2018 Historic Preservation Commission Review & Discussion October 18, 2018 Planning & Zoning Commission Review & Discussion November 20, 2018 City Council (1st reading of ordinance) December 4, 2018 City Council (2nd & possible 3,d reading of ordinance) January 29, 2019 Expiration of 8 -month deferral of the local landmark designation of 410-412 North Clinton Street