HomeMy WebLinkAbout2018-09-18 OrdinanceItem Number: 11.a.
I r ,
CITY OF IOWA CITY
UNESCO CITY OF LITERATURE
September 18, 2018
Ordinance amending Title 14, Zoning related to required retail storefronts in
the Riverfront Crossings Central Crossings Subdistrict. (ZCA18-
00001) (Second Consideration)
ATTACHMENTS:
Description
Staff Report
P&Z 08.06.18 draft minutes
Ordinance 1st Reading
il,a
Prepared by: Anne Russett,Senior Planner,410 E.Washington Street, Iowa City, IA 52240;319-356-5251
ORDINANCE NO. 18-4768
Ordinance amending Title 14, Zoning related to required retail
storefronts in the Riverfront Crossings Central Crossings Subdistrict
(ZCA18-00001).
Whereas, the Downtown and Riverfront Crossings Master Plan identifies areas of the
district for ground floor retail with the intention of creating a vibrant, active, and pedestrian-
friendly environment; and
Whereas, the Riverfront Crossing Form Based Development Standards implement the
vision of the Riverfront Crossings Master Plan; and
Whereas, the Riverfront Crossing Form Based Development Standards includes a
regulating plan that identifies locations where ground floor retail is required and provides no
flexibility for other land uses in areas identified as "required retail storefront"; and
Whereas, the Riverfront Crossings Form Based Development Standards also includes
an affordable housing obligation, which requires projects of at least 10 dwelling units to provide
affordable housing in an amount equal to or greater than 10 percent of the total number of
dwellings units in the project; and
Whereas, the proposed amendment allows ground floor residential uses within the
Central Crossings subdistrict in areas identified as required retail storefront when they are part
of an affordable housing project; and
Whereas, the proposed amendment provides market flexibility to support the goals of
affordable housing in the district; and
Whereas, the proposed amendment is limited to the Central Crossings subdistrict in
order to preserve the retail requirement along key commercial corridors in the South Downtown,
South Gilbert, and West Riverfront subdistricts and the small retail node within the Park
subdistrict; and
Whereas, the proposed amendment is consistent with the Comprehensive Plan and
supports the following housing goal and strategy:
Housing Goal: Encourage a diversity of housing options in all neighborhoods
Housing Strategy: Ensure a mix of housing types within each neighborhood, to provide
options for households of all types (singles, families, retirees, etc.) and people of all
incomes; and
Whereas, the proposed amendment supports the vision of the Downtown and Riverfront
Crossings Master Plan, which recognizes the need for flexibility to allow residential uses within
areas identified as required retail storefronts; and
Whereas, the Planning and Zoning Commission held a public meeting on August 16,
2018 and recommended approval of the aforementioned zoning code amendments; and
1
Whereas, it is in the City's best interest to adopt this ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA:
Section 1. Title 14 of the City Code of the City of Iowa City, Iowa is hereby amended by
adding the following underlined text:
Amend 14-2G-3B-2d Central Crossings and Orchard Subdistricts And Eastside Mixed Use
District, as follows:
Residential uses are not allowed within required retail storefronts, as specified in
the riverfront crossings regulating plan, except in the Central Crossings
subdistrict for housing subsidized by a federal or state program that requires at
least 60 percent of the units to be rent restricted and income restricted.
Section II. Repealer. All ordinances and parts of ordinances in conflict with the provision of
this Ordinance are hereby repealed.
Section III. Severability. If any section, provision or part of the Ordinance shall be adjudged to
be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a
whole or any section, provision or part thereof not adjudged invalid or unconstitutional.
Section IV. Effective Date. This Ordinance shall be in effect after its final passage, approval
and publication, as provided by law.
Passed and
approved this 18th day of September , 2018.
/ `
M or
Apgroved b
Attest Ack i
City lerk City Attorney's Office / 3/id"
2
Ordinance No. 18-4768
Page 3
It was moved by Mims and seconded by Thomas that the
Ordinance as read be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Vacancy—Botchway seat
X Cole
x Mims
x Salih
X Taylor
X Thomas
X Throgmorton
First Consideration 09/04/2018
Vote for passage: AYES: Mims, Salih, Taylor, Thomas,
Throgmorton, Cole. NAYS: None. ABSENT: Vacancy - Botchway seat
Second Consideration
Vote for passage:
Date published 09/27/2018
Moved by Mims, seconded by Taylor, that the rule requiring ordinances
to be considered and voted on for passage at two Council meetings
prior to the meeting at which it is to be finally passed be suspended,
the second consideration and vote be waived and the ordinance be voted
upon for final passage at this time.
AYES: Cole, Mims, Taylor, Salih, Taylor, Thomas, Throgmorton.
NAYS: None. ABSENT: Vacancy - Botchway seat
Ir
_Mw_ -4
I[[�1
4
CITY OF IOWA CITY
MEMORANDUM
Date: August 16, 2018
To: Planning & Zoning Commission
From: Anne Russett, AICP, Senior Planner, Neighborhood and Development Services
Department
Re: Amendment to Title 14, Zoning Code of the Iowa City Municipal Code related to
Required Retail Storefronts in the Riverfront Crossings Central Crossings Subdistrict
(ZCA18-00001)
Introduction
The proposed amendment amends the zoning code (Title 14 of the Iowa City Municipal Code), to
allow residential uses within areas identified as required retail storefronts on the Riverfront
Crossings regulating plan [Attachment 1] within the Central Crossings subdistrict when they are
part of an affordable housing project.
Background
The City adopted the Riverfront Crossings Master Plan in 2014. The master plan identifies areas
of the district for ground floor retail with the intention of creating a vibrant, active, and pedestrian -
friendly environment [Attachment 2]. The areas in the plan identified for ground floor retail were
conservatively selected to not impact the downtown retail market. These key retail nodes were
selected due to existing or future conditions that would enhance the streetscape. Furthermore,
the plan recognizes that the ground floor in these areas would initially be utilized for residential
uses until the market demand for retail increases.
Subsequent to the adoption of the master plan the City adopted the Riverfront Crossings Form
Based Development Standards to implement the vision and goals of the master plan. This form -
based code includes a regulating plan that identifies locations where ground floor retail is required.
Where the master plan provides the flexibility for residential, the regulating plan of the form -based
code requires ground floor retail in the areas identified as "required retail storefront".
Affordable Housing Requirement
The Riverfront Crossings' form -based code includes an affordable housing obligation. Projects
that contain at least 10 dwelling units must provide affordable housing units in an amount equal
to or greater than 10% of the total number of dwelling units in the project. The form -based code
provides options for satisfying this requirement, including providing the affordable units on-site,
off-site, and paying fees in -lieu of providing the affordable units.
In 2017 the City executed an affordable housing agreement with Dubuque and Prentiss
Investments regarding their project at 620 S. Dubuque Street. The project includes 36 residential
units and received a height bonus to five stories due to the owner's commitment to providing 15%
of the units as affordable housing. The agreement outlines that the owner will provide the
affordable housing units on-site, but may wish to transfer the affordable obligation to the property
at 628 S. Dubuque Street. Ultimately, the developer of 620 S. Dubuque Street and a future project
planned for 225 E. Prentiss Street would like to transfer the affordable housing obligation of these
two sites to the property at 628 S. Dubuque Street (see Figure 1). The developer is coordinating
with the Housing Fellowship, a non-profit organization that focuses on providing affordable rental
August 10, 2018
Page 2
housing in Johnson County, who would manage the affordable housing project at 628 S. Dubuque
Street. Del Ray Ridge, L.P. has a purchase agreement for 628 S. Dubuque Street.
In October 2017, the City Council passed a resolution committing $330,000 in City funds to Del
Ray Ridge, L.P. for the affordable housing project at 628 S. Dubuque Street. The Iowa Finance
Authority also awarded the project Low Income Housing Tax Credit (LIHTC) funds in March 2018.
On August 7, the City Council entered into an agreement with Del Ray Ridge, L.P. for a $330,000
loan for this project.
Here is a summary of the Del Ray Ridge project:
- 33 units total; 17 1 -bedroom and 16 2 -bedroom units
- 4 units affordable to households at or below 30% area median income (AMI)
- 5 units affordable to households at or below 40% AMI
- 20 units affordable to households at or below 60% AMI
- 4 units with no income requirements
- Affordability period of 30 years
In an August 7, 2018 memo to City Council regarding the Del Ray Ridge project, City staff noted
that the Riverfront Crossings' form -based code required ground floor retail at this site, but that the
City would be initiating a code amendment to allow ground floor residential.
Figure 1. Location Map
Fro e I iia , is
9
620 S. Dubuque Street, 36 units
225 E. Prentiss Street, future development
628 S. Dubuque Street, Del Flay Ridge
August 10, 2018
Page 3
Proposed Amendment
Staff proposes an amendment to the Riverfront Crossings' form -based code to allow ground
floor residential uses within the Central Crossings Subdistrict in areas identified as required
retail storefront when they are part of an affordable housing project. More specifically, to qualify
for this exemption projects must be subsidized by a federal or state program that requires at
least 60 percent of the units to be rent and income restricted [Attachment 3].
Staff proposes to limit the exemption to affordable housing and further limit it to the Central
Crossings Subdistrict for the following reasons:
• Providing market flexibility to support the goals of affordable housing in the district.
• The South Downtown, South Gilbert, and West Riverfront subdistricts have key
commercial corridors (e.g. Burlington Street, Riverside Drive, Gilbert Street) where
maintaining existing and requiring new retail is critical to enhancing the vibrancy of these
corridors. The Park subdistrict has one small node of required retail that is important to
maintain for the convenience of future residents. There are no required retail storefront
requirements in the University, Orchard, and Gilbert Subdistricts or the East Side Mixed -
Use District.
Comprehensive Plan Consistency
The proposed amendment supports the following housing goal and strategy from the
comprehensive plan:
• Encourage a diversity of housing options in all neighborhoods.
o Ensure a mix of housing types within each neighborhood, to provide options for
households of all types (singles, families, retirees, etc.) and people of all incomes.
The proposed amendment also supports the vision of the Downtown & Riverfront Crossings
Master Plan. The master plan recognizes the need for flexibility to allow residential uses within
areas identified as required retail storefronts. The proposed amendment will allow some flexibility
by providing an exemption for affordable housing projects within the Central Crossings Subdistrict.
Staff Recommendation
Staff recommends that the Planning and Zoning Commission recommend adoption of the
following proposed amendment to 14 -2G -3B -2d of the Iowa City Municipal Code by the Iowa City
City Council:
d. Residential uses are not allowed within required retail storefronts, as specified
in the riverfront crossings regulating plan, except in the Central Crossings
subdistrict for housing subsidized by a federal or state program that requires at
least 60 percent of the units to be rent and income restricted.
Attachments:
1. Riverfront Crossings Regulating Plan
2. Excerpt from Downtown & Riverfront Crossings Master Plan related to Primary Streets
and Required Retail Storefronts
3. Proposed Amendment to 14 -2G -3B -2d
Approved by:
1 , SrH ..___----
Danielle Sitzman, AICP, Development Services Coordinator
Department of Neighborhood and Development Services
ATT CHMENT 1
77 �-1
_-_
___--- -_
rT4 T� i-� FTS -T---` , �i
ff ff ; f jjjt 1 - , �]----_ - --
1 4 -i r
1 y
1
1
f
a�
1 � k
Legend
South Downtown Subdistrict
University Subdistrict
Central Crossings Subdistrict
Gilbert Subdistrict
Park Subdistrict
South Gilbert Subdistrict
West Riverfront Subdistrict
Orchard Subdistrict
- �-- _ -7 '•
Public Parks and Open Space / t_
Green Space
Primary Street
�..� Required Retail Storefront
Required Ralston Creek Frontage �JL-L
Riverfront Crossings Boundary 71 --
University of Iowa Campus
�rrr Pedestrian Street - f6- __1 }�
f � I•�
T)
ATTACHMENT 2
primary streets and required retail storefronts
Every great city has great streets. Great streets are not streets
that just move vehicular traffic. Instead, they are known for their
pedestrian activity, retail vitality, connectivity, and desirability as L_J J ,I
a'ought-after address. In other words, they become destinations 1 1�
intheir own right. The downtown blocks of Iowa Avenue, Ir I L _41 primary streets & storefronts
Washington Street, College Street, Clinton Street, and Dubuque u w1+t+eeY�1 -
Street best fit this definition. 1 1"'�', — Primary Street
As the plan for Downtown and Riverfront Crossings comes to- - ' - L -I Required Retail Storefront
fruition, additional street corridors will be added to this list. --
Outside of downtown, future primary streets should include key - I P J� Existing Waterways
east -west streets such as Burlington and Court, and north -south J L ! 'I Study Area Boundaries
streets such as Gilbert, Linn, Dubuque, Clinton, Capitol, and �j
Riverside Drive. I o Irl
Over time,these streets will transform into special 'places'. �+ -
Streetscapeenhancementswillimprovepedestriancomfort,
buildings - many with active street -level uses - wiII address the
street, and sidewalks will teem with life. In order to encourage }
the amount of street -level activity desired by participants in
the planning process, retail storefronts will be required at key
locations. These storefronts will have minimum floor to ceiling I: I ,'
height requirements, as well as opacity requirements. Initially, r+
these storefronts can be utilized for residential uses. As more f!
"rooftops'are added, this market will transition and residential /
-
useswillmigratetoretailuses.These storefronts, and the stores
they represent, will draw activity to key nodes within the Study
Area (Clinton Plaza, Rock Island Train Depot TOD, etc.). Care has _ 99 r Y
been taken to minimizethe amount and location of required retail
storefront so as to not negatively impact the existing Downtown
retail market. _ °"_�,,,__�
si
J�L
Rrghe PrrmaryStree6 and Required Reta rl Storefronts Diagram _ " I F
_ I
0' 400' 800' 1600'
® �l
29
ATTACHMENT 3
Proposed Amendment to 14 -2G -3B -2d
Title 14 — Zoning Code
Article G. Riverfront Crossings and Eastside Mixed Use Districts Form Based Development
Standards
14-2G-3: SUBDISTRICT STANDARDS:
B. Central Crossings And Orchard Subdistricts And Eastside Mixed Use District:
2. Uses: The principal uses allowed in the Central Crossings Subdistrict, Orchard
Subdistrict and Eastside Mixed Use District are the same as allowed in the CB -5
Zone, as specified in section 14-2C-2, table 2C-1 of this chapter, except as noted
below. Provisions and special exception approval criteria that apply in the CB -5 Zone
also apply in these districts as set forth in chapter 4, article B of this title, except as
noted below. In addition, the following restrictions and allowances shall apply:
a. In the Orchard Subdistrict, commercial and industrial uses are not allowed, except
in live -work townhouses, which may contain commercial uses allowed in the CB -5
Zone, provided the building is constructed to accommodate such uses and provided
the use is not prohibited in the list below. Quick vehicle service uses are not
allowed. (Ord. 17-4705, 5-16-2017)
b. In the Central Crossings Subdistrict, quick vehicle servicing uses are not allowed on
any frontage designated as primary street or Ralston Creek frontage, as specified in
the Riverfront Crossings regulating plan. In the Eastside Mixed Use District, quick
vehicle servicing uses are not allowed, except by special exception on property at
the corner of Burlington and Van Buren Streets. (Ord. 16-4675, 9-20-2016; amd.
Ord. 17-4705, 5-16-2017)
c. Household living uses shall be allowed within permitted building types as specified
in section 14-2G-5 of this article. For multi -family uses, the provisions in section 14-
46-4 of this title are superseded by the standards in this article and, therefore, do
not apply. Residential occupancy is limited to one "household" per dwelling unit, as
this term is defined in chapter 9, article A, "General Definitions", of this title. The
residential occupancy of a household living use is constrained by the provisions
of title 17, chapter 5, "Housing Code", of this title. The maximum number of
bedrooms per dwelling unit is three (3). Residential density (units per acre): no
maximum. However, in the Central Crossings Subdistrict for apartment buildings,
multi -dwelling buildings and mixed use buildings the number of three-bedroom units
per lot may not exceed thirty percent (30%) of the total number of units on the lot,
except for south of the Iowa -Interstate Rail Line, where the number of three-
bedroom units for these building types may not exceed twenty percent (20%). In the
Eastside Mixed Use District and Orchard Subdistrict, the number of three-bedroom
units for these building types may not exceed twenty percent (20%).
d. Residential uses are not allowed within required retail storefronts, as specified in
the riverfront crossings regulating plan, except in the Central Crossings subdistrict
for housing subsidized by a federal or state program that requires at least 60
percent of the units to be rent and income restricted.
e. Assisted group living uses shall be allowed within permitted building types as
specified in section 14-2G-5 of this article. Residential occupancy is limited to one
roomer per three hundred (300) square feet of floor area, not including floor area
within a garage or structured parking area.
f. Drinking establishments are not allowed.
g. Animal related commercial, repair oriented retail, and alcohol sales oriented retail
uses are not allowed in the Eastside Mixed Use District and Orchard Subdistrict.
h. In the Eastside Mixed Use District and Orchard Subdistrict, commercial recreational
uses, eating establishments, sales oriented retail, and personal service oriented
retail uses shall not be open to the public between the hours of eleven o'clock
(11:00) P.M. and six o'clock (6:00) A.M., except if located in a storefront with
frontage on Van Buren Street or Burlington Street.
MINUTES PRELIMINARY
PLANNING AND ZONING COMMISSION
AUGUST 16,2018-7:OOPM—FORMAL MEETING
E M M A J. HARVAT HALL, CITY HALL
MEMBERS PRESENT: Larry Baker, Mike Hensch, Phoebe Martin, Max Parsons, Mark
Signs, Billie Townsend
MEMBERS ABSENT: Carolyn Dyer
STAFF PRESENT: Sara Hektoen, Anne Russett
OTHERS PRESENT: Mary Ann Dennis, Sara Barron
RECOMMENDATIONS TO CITY COUNCIL:
By a vote of 6-0 the Commission recommend adoption of the following proposed amendment to
14 -2G -3B -2d of the Iowa City Municipal Code by the Iowa City Council:
d. Residential uses are not allowed within required retail storefronts, as specified in the
riverfront crossings regulating plan, except in the Central Crossings subdistrict for housing
subsidized by a federal or state program that requires at least 60 percent of the units to be rent
and income restricted.
CALL TO ORDER:
Hensch called the meeting to order at 7:00 PM.
PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA:
None.
ZONING CODE AMENDMENT ITEM (ZCA18-00001):
Discussion of Amendments to Title 14, Zoning of the Iowa City Municipal Code related to
Required Retail Storefronts in the Riverfront Crossings Central Crossings Subdistrict.
Russett noted this is specifically an amendment to the Riverfront Crossings Form Based Code
to allow affordable housing in areas identified as required retail storefronts on the Riverfront
Crossings regulating plan within the Central Crossings subdistrict.
The City adopted the Riverfront Crossings Master Plan in 2014. The master plan identifies
areas of the district for ground floor retail with the intention of creating a vibrant, active, and
pedestrian- friendly environment. These key retail nodes were selected due to existing or future
conditions that would enhance the streetscape. Furthermore, the plan recognizes that the
ground floor in these areas would initially be utilized for residential uses until the market demand
for retail increases. Riverfront Crossings Form Based Plan includes a regulating plan that
identifies locations where ground floor retail is required. Russett noted that unlike the Master
Plan there is no flexibility in the Form Based Code for residential uses in these areas.
Planning and Zoning Commission
August 16 2018
Page 2 of 6
The Riverfront Crossings' form -based code includes an affordable housing obligation. Projects
that contain at least 10 dwelling units must provide affordable housing units in an amount equal
to or greater than 10% of the total number of dwelling units in the project. Currently there is a
City -supported housing project that is located within one of these areas where ground floor retail
is required. Russett highlighted several properties in the area, the first is 620 South Dubuque
Street. The project includes 36 residential units and received a height bonus to five stories due
to the owner's commitment to providing 15% of the units as affordable housing. The same
developer is proposing a future project at 225 East Prentiss Street and 10% of those units will
be required to be affordable. The developer would like to would like to transfer the affordable
housing obligation of these two sites to the property at 628 South Dubuque Street, the site of
the future Del Ray Ridge Affordable housing project. The developer is working with The
Housing Fellowship who will manage the affordable housing project. 620 and 628 South
Dubuque Street are both in the required ground floor store front retail area.
Russett gave some background on the Del Ray Ridge project. They are proposing 33 units
total, 29 of which would be affordable. 4 units affordable to households at or below 30% area
median income (AMI), 5 units affordable to households at or below 40% AMI and 20 units
affordable to households at or below 60% AMI. The affordability period would be for a minimum
of 30 years. The City has committed $330,000 to this project and the project was also awarded
low-income housing tax credits from the Iowa Finance Authority.
Staff is proposing an amendment to the Riverfront Crossings' form -based code to allow ground
floor residential uses within the Central Crossings Subdistrict in areas identified as required
retail storefront when they are part of an affordable housing project. More specifically, to qualify
for this exemption projects must be subsidized by a federal or state program that requires at
least 60 percent of the units to be rent and income restricted. Russett stated this amendment
would provide market flexibility for affordable housing projects and Staff is proposing it is only
limited to the Central Crossings Subdistrict. The South Downtown Subdistrict, the West
Riverfront and South Gilbert subdistricts have key commercial corridors and this flexibility may
not be appropriate as those corridor areas need to have a vibrant commercial presence and
streetscape. The Park subdistrict has one small node of required retail that is important to
maintain for the convenience of future residents. There are no required retail storefront
requirements in the University, Orchard, and Gilbert Subdistricts or the East Side Mixed -Use
District. Russett noted this proposal aligns with the Master Plan's vision of these areas
originally being residential and perhaps transitioning to retail in the future.
Staff recommends that the Planning and Zoning Commission recommend adoption of the
following proposed amendment to 14 -2G -3B -2d of the Iowa City Municipal Code by the Iowa
City Council:
d. Residential uses are not allowed within required retail storefronts, as specified in the
riverfront crossings regulating plan, except in the Central Crossings subdistrict for housing
subsidized by a federal or state program that requires at least 60 percent of the units to be rent
and income restricted.
Parsons asked how Staff came to the 60% requirement. Russett replied that was discussed
with the affordable housing experts on staff and all projects that are State or Federal funded
require at least 60%.
Hensch asked about the number of units that will be at 225 East Prentiss Street. Russett noted
that project is currently in a preliminary stage but the developer is proposing 45 units on that
site.
Planning and Zoning Commission
August 16 2018
Page 3 of 6
Townsend inquired what would happen to the tenants that may be in the ground floor residential
spaces that may transition to retail space in the future. Russett noted the market is always
fluctuating and while there might be a demand for residential at one point and then for retail in
the future. The idea is not to convert the area into retail if there are residential needs.
Baker noted that all of the affordable housing obligations from three buildings are being
transferred to one site where units will have a 30 -year guarantee to stay affordable. Russett
confirmed if the affordable housing is transferred to 628 South Dubuque Street. Baker asked
then if those units could not convert to retail space then for 30 years. Russett confirmed that
would be correct.
Hensch opened the public hearing
Mary Ann Dennis (Executive Director, The Housing Fellowship) wanted to comment on the 30
year guarantee for affordable housing. Dennis noted The Housing Fellowship is a non-profit
and they enter into these types of partnerships and try to get the low-income housing tax credits
is because the investors get the tax credits for 10 years, they are required to stay with the
project for 15 years, but the units are required to be affordable for 30 years. This is based on
the IRS low-income housing tax credit, which also states a qualifying non-profit has the right of
first refusal to buy the project (for the cost of $1 per unit plus any debt) from the investor at the
end of the investors 15 year requirement. Once The Housing Fellowship is the sole owner of
the building their intention is to keep the units as affordable for the life of the building. Dennis
noted if this amendment doesn't pass this project will not move forward.
Townsend asked if this has been done with other projects. Dennis stated this is the fifth such
project The Housing Fellowship has been part of, they now own or manage 174 affordable
housing units (houses, duplexes, condos or apartments) in Johnson County. They have been
in business for 28 years.
Sara Barron (Affordable Housing Coalition) noted this amendment change is another step in the
City's process of facilitating the building of this project. This project will create 20 new
affordable housing units and contribute to the overall quality of the neighborhood. The City has
already informally acknowledged its willingness to participate in this project with the proposed
residential top to bottom, and therefore the Affordable Housing Coalition strongly supports the
Planning & Zoning Commission passage of this amendment.
Hensch closed the public hearing.
Parson moved to recommend adoption of the following proposed amendment to 14 -2G -
3B -2d of the Iowa City Municipal Code by the Iowa City Council:
d. Residential uses are not allowed within required retail storefronts, as specified in the
riverfront crossings regulating plan, except in the Central Crossings subdistrict for
housing subsidized by a federal or state program that requires at least 60 percent of the
units to be rent and income restricted.
Martin seconded the motion.
Baker noted this is a very specific amendment for a very specific small zone, is there any
chance this will ever be applicable anywhere else in the district. Russett noted there are some
areas elsewhere in the subdistrict where it could be used if the need was presented.
Planning and Zoning Commission
August 16 2018
Page 4 of 6
Signs agrees with the proposed change, he noted the reality is there is a lot of vacant retail
space on the ground floor of some of the developments. Adding this flexibility is nice especially
since it is tied to affordable housing which is needed.
A vote was taken and the motion passed 6-0.
CONSIDERATION OF MEETING MINUTES: JULY 5, 2018
Signs moved to approve the meeting minutes of July 5, 2018.
Martin seconded the motion.
A vote was taken and the motion passed 6-0.
PLANNING AND ZONING INFORMATION:
Russett gave two updates. She spoke with the chair and they discussed amending the bylaws
so that will be coming before the Commission in the next few months. Also there is an implicit
bias training coming up and Russett distributed a flyer for the event.
Hensch noted the bylaws were last amended in 2004 so it is a good time for a review
Signs noted there is a question regarding the impact of the decisions of zoning and code on the
affordability of constructing housing. He would like at some point for the Commission to have a
deeper conversation about that and perhaps establish some guidelines or expectations. Signs
stated the reality is there are things the Code requires or that Planning & Zoning require that do
directly impact the cost of construction. He has heard that anywhere from 25% to 30% of the
cost of a new home is due to Federal, State and Local regulations. Hensch agreed. Martin
noted it is not the purview of the Commission to worry about costs. Baker suggested having the
Building Association present to the Commission regarding costs.
Signs presented an example of a recent Commission decision, a project proposed off Camp
Cardinal Road. Because of the Commission requests and requirements the developer/applicant
had to redesign their plans three times which is thousands of dollars of work that will be added
into the total cost of the project. The developer works with Staff to meet City guidelines. Martin
noted in that case the applicant was asking for variances and therefore were not meeting the
zone or code guidelines.
Hensch stated this item should be tabled until set as an agenda item.
Adjournment:
Signs moved to adjourn.
Townsend seconded.
A vote was taken and the motion passed 6-0.
Item Number: 13.
r �, CITY OF IOWA CITY
COUNCIL ACTION REPORT
September 18, 2018
Ordinance amending Title 17, entitled "Building and Housing," Section 5,
entitled "Housing Code," to require properties with new rental permits to be
leased promptly. (Pass and Adopt)
Prepared By: Stan Laverman, Senior Housing Inspector
Reviewed By: Tracy Hightshoe, Neighborhood & Development Services Director
Fiscal Impact: No impact.
Recommendations: Staff: Approval
Commission: N/A
Attachments: Ordinance
Executive Summary:
City Council established a rental permit cap and strengthened the minimum requirements for rental
housing in December 2017. Staff is aware of homeowners within these areas obtaining rental
permits as a speculative measure. The proposed ordinance addresses this by requiring
properties receiving a rental permit to be leased promptly.
Background /Analysis:
During the 2017 session, the state legislature adopted HF 134 amending Iowa Code Section
414.1 to prohibit municipalities, after January 1, 2018, from adopting or enforcing any regulation or
restriction related to occupancy of residential rental property that is based upon the existence of
familial or nonfamilial relationships between the occupants of such rental property.
In response to this action, the City Council adopted multiple housing and zoning code changes to
mitigate the destabilizing effects of the state legislation. One of the larger code changes was the
implementation of a rental permit cap for single-family and duplex properties located in
neighborhoods encompassed in the University Impact Area. When the cap was implemented, six
out of the thirteen neighborhoods were over the 30% cap: Northside/Goosetown (53.6%), College
Green (53.4%), Bowery (76.1 %), Riverfront Crossings East (65.1 %), Riverfront Crossings West
(64%), and Brookland/Roosevelt (54.9%).
The Miller Orchard and Longfellow neighborhoods started out below the 30% cap, but have now
reached the 30% cap for rental permits for single-family and duplex units in their respective
neighborhoods. The Mark Twain neighborhood currently has four available rental permit
applications available before it will reach the 30% cap. Since the rental permit moratorium ended
on January 3, 2018, Iowa City has seen 84 properties obtain rental permits. 40 of those permits
are in the Miller Orchard, Longfellow, and Mark Twain neighborhoods.
Staff has become aware of various strategies investors and homeowners are using to get around
the rental permit cap. We are monitoring the use of properties purchased by investors to ensure
they are not being rented without a permit. Creative legal maneuvers have also been used to
negate the intention of the rental permit cap. By bringing those legal actions to the attention of our
community banking partners, we feel that they will not be a large issue for us in the future.
Staff is also aware of homeowners obtaining a rental permit as a speculative measure due to the
rental permit cap. The proposed ordinance change stipulates that the City shall not issue a rental
permit for any single-family dwelling or duplex to an owner -occupant unless the owner has
provided documentation showing bona fide intent to vacate and offer the unit for lease. This fine-
tuning of the housing code changes originally adopted in December 2017 will assist staff in their
efforts to foster healthy neighborhoods throughout the City and carry out the original intent of the
single-family and duplex rental permit cap. Staff recommends passage of this ordinance.
ATTACHMENTS:
Description
Ordinance 2nd Reading
► s
Prepared by: Susan Dulek,Asst.City Attorney,410 E.Washington Street,Iowa City, IA 52240;319-356-5030
ORDINANCE NO. 18-4769
Ordinance amending Title 17, entitled "Building and Housing," Section 5,
entitled "Housing Code," to require properties with new rental permits to
be leased promptly.
Whereas, in Ordinance No. 17-4734, City Council established a rental permit cap and
strengthened the minimum requirements for rental housing;
Whereas, staff is aware of homeowners obtaining a rental permit as a speculative
measure due to the rental permit cap;
Whereas, properties that receive rental permits should be leased promptly; and
Whereas, it is in the City's best interest to adopt this ordinance.
Now, therefore, be it ordained by the City Council of the City of Iowa City, Iowa:
Section I. Amendments.
1. Title 17, entitled "Building and Housing," Chapter 5, entitled "Housing Code," Section 16,
entitled "Certificate of Structure Compliance and Rental Permit," Subsection C3 is amended by
numbering the unnumbered paragraph as paragraph a and adding the following new paragraph
b:
b. Notwithstanding any other provision in this chapter,
(1) The City shall not issue a rental permit for any single-family dwelling or duplex to an owner
occupant unless said owner has provided written documentation showing a bona fide intent, as
reasonably determined by the Director, to vacate the dwelling for a minimum period of 180
consecutive days.
(2) Such documentation shall include, but is not limited to: transfer of employment, acceptance
of new employment, military orders, acceptance to an educational institution, executed
purchase agreement for a single-family or other residential unit, executed lease for a single-
family or other residential unit, and marriage license.
(3) The rental permit shall be revoked if the owner fails to vacate the dwelling within 180 days
of its issuance.
(4) No rental permit issued to an owner occupant between January 1, 2018 and the effective
date of this ordinance shall be renewed unless the owner occupant meets the requirements set
forth herein.
(5) With respect to this provision, the Board of Appeals does not have authority to hear an
appeal of a decision to deny or revoke a rental permit, grant a variance, or grant any other relief.
Section II. Repealer. All ordinances and parts of ordinances in conflict with the provision of
this Ordinance are hereby repealed.
Section III. Severability. If any section, provision or part of the Ordinance shall be adjudged to
be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a
whole or any section, provision or part thereof not adjudged invalid or unconstitutional.
Section IV. Effective Date. This Ordinance shall be in effect after its final passage, approval
and publication, as provided by law.
Passed and approved this 18th day of September , 2018.
1
(e. '7-i<zit:7
m1--
A
Attest: P i i / APPr6iv S` J",'—� c- r r- (s)
City Jerk % City Attorney's Office
2
Ordinance No. 1A-4769
Page 3
It was moved by Thomas and seconded by Mims that the
Ordinance as read be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Vacant—Botchway seat
x Cole
x Mims
x Salih
x Taylor
x Thomas
x Throgmorton
First Consideration 08/21/2018
Vote for passage: AYES: Cole, Mims, Salih, Taylor, Thomas, Throgmorton.
NAYS: None. ABSENT: Vacant - Botchway seat.
Second Consideration 09/04/2018
Vote for passage: AYES: Salih, Taylor, Thomas, Throgmorton,
Cole, Mims. NAYS: None. ABSENT: Vacancy - Botchway seat
Date published 09/27/2018