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5. Staff Report- Village Areas and Densities Memorandum To: Scandia Planning Commission Reference: Village Area Land Use and Density Issues—Discussion for January 6 Copies To: Economic Development Authority (EDA) Kristina Handt, City Administrator Brenda Eklund, Clerk Project No.: 15486.000 From: Sherri Buss, RLA AICP, Planner Routing: Date: December 22, 2014 Background At its December meeting, the Planning Commission and EDA members discussed planning and zoning issues related to the 2040 Comprehensive Plan, the future of the Village Area, and regulations related to affordable housing units, including accessory apartments. EDA members have had recent discussions with business owners in Scandia, who have expressed concerns about the cost of housing in the community, and that many of those who work in Scandia cannot afford to live in the community. This makes it difficult to recruit workers and expand businesses. Members also identified a concern to provide more housing for seniors in Scandia. EDA members suggested that there may be a need to review zoning district boundaries and requirements in the Village area to permit more lifecycle and affordable housing to be developed in Scandia. Planning Commission members reviewed the discussions on Village-area zoning during the development of the last comprehensive plan, and the reluctance of many property owners in the Village area to permit higher densities that could make new housing for seniors and families more affordable. The PC and EDA members agreed that this issue will require public discussion. Meeting attendees also raised questions about whether and where accessory housing units are permitted in Scandia, as an option to provide more housing choices. As a first step, the Planning Commission members suggested a discussion at the January meeting to review the current zoning requirements that affect lifecycle and affordable housing and development in the Village and adjacent areas, to identify whether there are some areas that would be suitable for future housing development, and to review the current requirements related to accessory housing units. This memo and the attached map provide information for that discussion, including a general review of housing goals in the Comprehensive Plan, housing options permitted in the zoning Scandia Planning Commission Village Area Discussion Page 2 January 6, 2015 districts in Scandia (including accessory apartments), and performance standards related to options that might provide more affordable units. Attachments include a map of the zoning districts in the Village area over an aerial photo for discussion on January 6, and information about other communities that are considering options to permit accessory units in single-family zoning districts. Housing Goals and Policies in the 2030 Comprehensive Plan Two of the housing goals and policies in the Comprehensive Plan support expansion of housing opportunities in Scandia, and include strategies to create zoning districts that allow smaller lot sizes and investigate opportunities to provide more diverse housing in Scandia: Goal 1: The City of Scandia will expand life-cycle housing opportunities for residents at all points in life. Policy 1: The City will create opportunities to develop housing on smaller lots and to develop two-family and multi-family housing within the village center. o Implementation strategy 1: Create a village zoning district allowing smaller lots when community wastewater systems are available. o Implementation strategy 2: Investigate opportunities and costs for expanding existing community wastewater or create new community systems.  Policy 2: The City will continue to work with the Washington County Housing and Redevelopment Authority to identify opportunities for providing additional affordable senior housing in the village center. o Implementation strategy 1: Work with the County HRA to identify market absorption rates for senior housing, amenities that will sustain senior housing, and financing opportunities for new senior housing developments. o Implementation strategy 2: Identify village areas suitable for higher density affordable senior housing within zoning regulations. Current Zoning and Housing Options The Village area currently includes 4 zoning districts. Three of the districts permit single-family and multi-family residential uses. The Industrial District permits accessory apartments as an accessory use to a commercial use. Most districts permit accessory apartments, with a CUP or Administrative permit. The following table and text summarize current zoning requirements for housing in the Village area and other districts: Scandia Planning Commission Village Area Discussion Page 3 January 6, 2015 Zoning District Single- Family Multi- family Accessory Apartments PUD Minimum lot size/density # Vacant Lots/ Size Range Village Mixed Use A (VMU A) Permitted CUP CUP CUP 2,500 square feet (17 units per acre) 12 .07-1.77 acres Village Mixed Use B (VMU B) Permitted CUP CUP CUP 2.5 acres 11 .71-20 acres Village Neighborhood (VN) Permitted CUP – Density Bonus Option Admin. Permit CUP 2.5 acres 48 .07-25.34 acres *34 parcels are less than 2.5 acres each Industrial Park (IP) Not permitted NP CUP CUP 2.5 acres Agriculture Core (AG C) Permitted NP Admin. Permit NP 2-5 acres or 20 acres and larger/4 units per 40 acres General Rural (GR) Permitted NP Admin. Permit NP 2.0 acres/4 units per 40 acres Rural Commercial (R COMM) CUP as part of a PUD CUP, as part of a PUD CUP PUD 4 per 40 acres  Village Mixed Use A (VMU A) – the historic village center. Goals for the District include preserving and protecting the long-term viability of historic properties and structures by allowing a mixture of land uses. Uses are made compatible by enforcement of the City’s Design Guidelines o Single-family residential uses are permitted in the VMU A District o Accessory apartments—either to a commercial use or a residential use—are permitted with a CUP. Scandia Planning Commission Village Area Discussion Page 4 January 6, 2015 o Multifamily residential uses are permitted with a CUP o Planned Unit Developments (mixed residential and commercial uses) are permitted with a CUP o The minimum lot size in the district is 2,500 square feet. The City has not established a maximum density for the district—the minimum lot size could be translated to about 17 units per acre. o Maximum lot coverage in the district is 80%, and there are no minimum building setbacks. These requirements could be compatible with multifamily housing, as long as it was consistent with the City’s Design Guidelines.  VMU Mixed Use B (VMU B) – established as a potential growth area for the village center. This district permits a mix of commercial and residential land uses. o Single-family residential uses are permitted in the VMU B District o Accessory apartments—either to a commercial use or a residential use—are permitted with a CUP. o Multifamily residential uses are permitted with a CUP o Planned Unit Developments (mixed residential and commercial uses) are permitted with a CUP o The minimum lot size in the VMU B District is 2.5 acres, with a minimum frontage of 160’ on public roads, and the minimum buildable area is 1.0 acres. The minimum lot size may make it challenging and costly to develop multifamily or affordable housing options in this district. o Maximum lot coverage in the district is 65%. Setbacks are Front: 40 feet; Side: 20 feet: Rear: 50 feet.  Village Neighborhood (VN) – established to designate growth areas surrounding the village center, to support single-family uses on large lots that reflect the existing lot sizes o Single-family residential uses are permitted in the VMU District o Multi-family residential uses are permitted with a CUP. The City may grant a density bonus in this district, up to a density of one-dwelling unit per 1.0 acre, for the development of “life-cycle” housing. Lifecycle housing includes housing designated for residents age 55 and above, or housing that is affordable to households earning up to 120% of the area’s median income (U.S. HUD definition). o Accessory apartments are permitted with an Administrative Permit in the VN District o PUD’s are permitted with a CUP Scandia Planning Commission Village Area Discussion Page 5 January 6, 2015 o The minimum lot size in the VN District is 2.5 acres, with a minimum frontage of 160’ on public roads, and the minimum buildable area is 1.0 acres. The minimum lot size may make it challenging and costly to develop multifamily or affordable housing options in this district.  Industrial Park District o While single-family and multi-family uses are not permitted in this district, Accessory Apartments (accessory to a Commercial use). o PUD’s are permitted in the district with a CUP.  PUD’s offer some potential to vary from the lot sizes and zoning standards to accommodate a wider variety of housing, but flexibility is limited by the density requirements of each zoning district: o The Zoning Ordinance permits PUD’s to allow for more flexible development design in the VMU A, VMU B. VN, and R COMM districts. A PUD could allow for a mix of uses and a mix of housing types. o The Ordinance says that PUD’s could allow for creative site design that varies from some land use regulations. The Ordinance specifies, however, that the maximum density of the PUD may not exceed the maximum density permitted in the zoning district. Therefore, lot sizes, setbacks, frontage and similar dimensional requirements within the PUD could vary from the district requirements, but overall density cannot.  The performance standards for accessory apartments in all districts are as follows: o No more than one accessory apartment within a single-family dwelling unit. o The structure in which the accessory apartment is located shall be owner- occupied. o No separate curb cut shall be permitted for the accessory apartment unit o The owner shall obtain an administrative permit once a year in January for the duration of the use, presenting at the time of renewal, proof in the form of an affidavit that the circumstances for which the permit was issued have not changed.  The performance standards for Multifamily Residential Developments are the following: o The number of dwelling units shall not exceed the maximum density for the zoning district in which the development is located. o If the area is not served by public sewer and public water, the development shall be able to meet all on-site septic requirements and all standards for the provision of safe drinking water to the residents of the development. o All structures shall meet the minimum setback requirements for the zone in which it is located. o The distance between principal structures shall be a minimum of 30 feet. o A buffer of 50 feet shall be provided between the lot line of a single-family residential lot and the multi-family structure. This buffer shall be landscaped with Scandia Planning Commission Village Area Discussion Page 6 January 6, 2015 a combination of berms, deciduous and/or coniferous trees to screen the multifamily residential development from the single-family residential uses. Some Items for Discussion  Does Scandia want to provide more potential locations for affordable or “lifecycle” housing within the city? Such housing (other than accessory apartments) would typically require higher densities than those allowed in most zoning districts. Are there appropriate locations for units such as the Cottages, or other lifecycle housing? (Map provided for your consideration before the meeting; a larger map will be available at the meeting.) o Typical townhouse densities (attached or detached) are 5-8 units per acre, and apartment densities are usually higher. Only the VMU A district would permit such densities, even with a PUD.  The City may currently grant density bonuses for life-cycle housing in the VN District. Should density bonuses for life-cycle housing be an option in other Village districts? Is the existing bonus meaningful to encourage development of lifecycle housing?  Accessory apartments are currently an option to provide affordable units in most zoning districts. This use requires a CUP in the VMU A and VMU B districts, while it is allowed with an Administrative Permit as accessory to a residential use in the VN, General Rural and Agriculture Core districts. Is the CUP requirement a barrier to creating accessory apartments in the VMU A and B Districts? Why is a CUP required in those districts for accessory apartments?  Accessory apartments must currently be located within single-family residential units. Should the city consider permitting them as separate units on the same lot as single- family homes as well?  Is the requirement for an annual permit for accessory apartments necessary? Are there existing permits for this use in Scandia?  Should any changes be considered to the performance standards for accessory apartments or multifamily residential developments to encourage more affordable housing?  Could multifamily housing be a permitted use in some districts rather than a conditional use, given the current performance standards adopted in the Development Code? Or could the performance standards be modified to make multifamily housing a permitted use rather than a conditional use in some districts?