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Direction on Land Use Application Processing During General Plan Update C1903 Consideration of a House Truckee First StrategyAGENDA ITEM 7` I MEETING DATE: April 24, 2018 TO: Honorable Mayor & Councilmembers FROM: Denyelle Nishimori, Community Development Director .W. - SUBJECT: Direction on Land Use Application Processing During General Plan Update (CIP C1903); Consideration of a "House Truck e First Strategy" APPROVED BY W 1AP, _�;/ Jeff Loux, tc6n anager RECOMMENDATION: That the Council provide direction to staff on the processing of land use applications during the 2040 General Plan Update based on the following options: Option 1 Do nothing and maintain status quo. Selection of this option means that planning staff would continue to process all land use applications independent of the General Plan Update process. Building permits are issued status quo. Option 2 Adopt an urgency ordinance (moratorium) to pause the review of certain land use permit types with a very limited 1 defined scope. Building permits are issued status quo. Option 3 Select a "House Truckee First Strategy" whereby the dialogue on community housing opportunities occurs first in the General Plan Update timeline / process. Housing moves to the "front of the line" in the General Plan Update and housing proposals are considered and prioritized. Non-residential projects are processed status quo. Building permits are issued status quo. Staff recommends pursuit of Option 3 to prioritize housing and enable new housing opportunities to be considered through a Town -wide comprehensive approach. DISCUSSION: On February 13, 2018, the Town Council initiated an update to the 2025 General Plan with a concurrent update to the 1997 Truckee Downtown Specific Plan. As part of the February staff report, staff asked the question about what to do with planning applications while the General Plan Update is in process. The reasoning presented by staff for why Council would want to consider limiting some planning application processing included: Page 1 of 8 • Prioritization of the 2040 General Plan Update. General Plan updates require significant staff and community resources to ensure the creation of a quality plan that is on point, on time and on budget • Temporarily halting development pending completion and adoption of a new general plan that is likely to have new community goals and policies specific to land use development • Prevent a "rush" to develop • Prevent hasty decisions that would potentially compromise General Plan Update efforts / prevent immediate construction that might be inconsistent with the provisions of a future plan Direction from Council was requested by staff as part of a series of questions including whether or not Council wanted to initiate a General Plan Update and Downtown Specific Plan Update. The staff report was interpreted by some as a request for Council to approve a building moratorium which led to several staff discussions and meetings with building industry representatives, including the Contractor's Association of Truckee Tahoe (CATT), and Mountain Area Preservation (MAP) prior to the Council meeting. During public comment, there was opposition to slowing, pausing or stopping any land use or building activity in addition to comments in support of a "pause." Although Council directed staff to bring back more information for further discussion, the general request was to not overshadow the General Plan Update process; meaning the Council was interested in providing final direction to staff quickly. Following the Council meeting, staff tabled this topic temporarily and switched gears to prepare the General Plan Update / Downtown Specific Plan Update consultant Request for Proposals and the General Plan Advisory Committee staff report. This break resulted in an opportunity to re -think of the General Plan Update process and its relation to land use permit applications. Option 3: Why Consider a "House Truckee First Strategy?" Over the last several years, the lack of affordable and workforce housing and ways to get new units built has risen to the top of community and Council priorities. There is a lot of energy behind creating solutions through the Council's efforts (e.g.-committing funds to affordable housing projects, Mountain Housing Council, amending regulations, etc.), employer efforts (e.g.-Tahoe Dave's employee housing, Tahoe Donner employee housing) and emerging development concepts. Although it is typical for planning staff to ask the question about how to handle land use permit processing during a General Plan Update, staff's reasoning was to understand the level of commitment to the General Plan Update. Often land use applications can consume community bandwidth making it more difficult to discuss community -wide issues such as the relationship between community character and housing density. General Plan Updates are one of the few times that a community has the opportunity to consider land use, transportation, conservation, and other issues on a comprehensive basis. By nature, land use applications are narrowly focused to the parcel(s) where development is proposed and the immediate surrounding area. A project at Donner Lake for example, is most typically of interest to Donner Lake area residents and property owners. A Glenshire property owner does not necessary feel compelled to participate in the review process because potential issues are typically localized to the narrow geographic area surrounding the property. But if the project was to be presented under the umbrella topic of "how to create more housing opportunities" and it was one of 10-20 sites being considered as part of a housing solutions dialogue, the conversation is broadened and the perspective is Town -wide. Through this comprehensive perspective, the community is able to consider where new housing types can be created, at what densities and design qualities and how much of each type is appropriate. This is fundamental to the role of the General Plan as a comprehensive blueprint for future growth and conservation. Without a comprehensive check-in, the Town Council Staff Report Page 2of8 risk is that the community and General Plan become at odds and development no longer matches community expectations. There are any number of options for Council to consider related to the General Plan Update, but a strategy that prioritizes housing can achieve much the same benefits as a moratorium. Instead of putting development proposals on the back burner while the community participates in various aspects of the General Plan Update, applications that include housing are highlighted and used to initiate community dialog about where new housing should go, at what density / affordability and what type (e.g.-multi-story apartments, small for -purchase attached or detached homes, duplexes, etc.). Whereas a moratorium says "wait up to two years until the General Plan Update / Downtown Specific Plan process is complete," the House Truckee First Strategy says "tell us your proposal and let's get community feedback first so you can decide how to proceed." Other benefits include: The Town takes the lead on community engagement and environmental review. Project proponents will know if there is community support for their idea / proposal / application or if there are other options that hadn't been previously considered early in the process (e.g.-increasing density, adding a different housing type, etc.). Project proponents save time by knowing where their idea / proposal / application stands with decision -makers. There is little additional increased review time. One of CATT's primary concerns about a moratorium is the impact to the building industry professionals in addition to the builders. This includes architects, designers, realtors, engineers, agents etc. who assist developers and builders in the preparation of land use permit applications. A land use permit request for a project that includes a rezone or similar legislate act can struggle to find staff or community support, spending significant time and money before it makes its way to the Council for action. This approach promotes comprehensive land use planning. Projects that fully meet current Town standards and are consistent with the General Plan are processed status quo. Building permits are processed status quo. Projects that don't fit within current zoning or General Plan land use designations, but include housing, move to the forefront of the General Plan Update concurrent with a town -wide land use assessment to determine if the assumptions made with the 2025 General Plan about the amount of land needed by land use type for buildout remains valid, or if an increase or decrease in any land use category is warranted. For example, staff has heard significant interest in creating higher density residential housing Downtown. A question for the community to consider is where new higher residential densities within Truckee would be most appropriate. Jibboom Street? Hilltop? South River? West River? Joerger Ranch? All of these? None of these? Should it be mixed-use or only residential? What would be the Community Character implications? The ability for community members to freely talk about housing opportunities within the Town as a whole, at a broad perspective, without the constraint of a narrow project focus. This is of particular interest to Mountain Area Preservation (MAP) and SOS Glenshire who have requested to revisit the zoning and General Plan Land Use designation on the Canyon Springs property at the eastern edge of Glenshire. Staff notes that the Canyon Springs developers continue to pursue their single-family lot subdivision, and are not interested in modifying the zoning or General Plan land use designation. How Might this Approach Work? To illustrate how the "House Truckee First Strategy" might work, the following represents one possible scenario. Town Council Staff Report Page 3 of 8 First, staff anticipates developing background data to guide community discussion. This could include available land capacity for a variety of land uses, current housing data and current housing types, densities and design requirements. Applicants and interested parties, including those described below, would be invited to submit their best housing or mixed-use ideas for their sites. These could be compiled into a housing / mixed-use discussion "booklet" to accompany the background data. If a land owner / developer does not wish to respond, their site would be included in the discussion simply with the current zoning and General Plan Land Use Designation. Next, staff and the Town's General Plan Update consultants would organize and run a series of community workshops to consider the housing options and discuss their implications, opportunities, pros and cons. We would propose to run similar workshops in various neighborhoods and with pop-up events to ensure engagement with a variety of interest groups. Landowners and developers / project proponents would be welcome at these meetings. Staff and consultants would also do a preliminary "fatal flaws" analysis of environmental impact issues associated with the various housing and mixed-use ideas and projects and take all of this information to the General Plan Advisory Committee (GPAC) for their input, refinements and to address any conflicting opinions. The result would be draft proposal changes to the General Plan Land Use Map, Land Use Element, Housing Element and possible some master plan and / or specific plan amendments that could be integrated into the draft 2040 General Plan as it moves forward. Applicants would then be able to put their projects forward as they would otherwise. Current and Possible Rezone / General Plan Amendment Requests Aside from the Town -initiated Housing Element rezones anticipated for spring 2018, staff has identified a number of preliminary applications, applications and concepts that are requesting rezone and / or General Plan Land Use Designation amendment approval. The applications and concepts listed here have either been formally submitted or are potential projects that may be submitted or are being contemplated by an owner or potential buyer, but have not yet submitted a formal application. All requests to modify zoning or the General Plan Land Use Designation are considered "legislative acts" and are not projects or land use entitlements. Other legislative acts include modifications to specific plans / master plans and other regulatory documents. They are not subject to the Permit Streamlining Act like projects and typically have a much longer review timeline than land use permits (e.g.-Use Permit, Development Permit, Planned Development, etc.) with the Planning Commission making a recommendation to Council and Council taking final action. Jibboom Street Hotel and Residential Development An application was submitted first as a preliminary application on September 7, 2017 and subsequently as a formal application on January 16, 2018. The formal application is currently under review by the Planning Division. Description: A mixed-use project proposed at the northwest corner of Jibboom Street and High Street in Downtown Truckee. The applicants are proposing a 34 - room hotel with a manager's unit (intended as workforce housing) and five affordable housing units on Jibboom Street; eight single-family residences on High Street; and 24 for -sale residential townhome units at the corner of Jibboom Street and Bridge Street. The "hotel" is proposed to be an extended stay hotel beyond the 30 -day maximum which would require that the hotel be considered a residential project under the current Town Council Staff Report Page 4 of 8 Development Code. In order to accommodate the density proposed with the extended stay hotel, a rezone to increase density is required. Truckee Tahoe Lumber Rezone An application was submitted on March 27, 2018. The formal application is currently under review by the Planning Division. Description: Request to rezone a portion of the existing Downtown Truckee Tahoe Lumber site that is currently in the Public Facilities (PF) zoning district to incorporate it into the Downtown Extension District within the Railyard Master Plan. Conceptual future development plans include a hotel with conference center and high density workforce housing. Hilltop Master Plan Area Two pre -applications were recently submitted and completed for the Hilltop Area. Description: Pre -application 1 (Submitted January 31, 2018, completed March 1, 2018): A mixed-use development that would require text revisions to the approved Hilltop Master Plan to allow a boutique hotel, multi -family and single-family residential units, and a small amount of supporting commercial / retail square footage in addition to retaining the existing Cottonwood restaurant. Pre -application 2 (Submitted March 19, 2018, completed March 30, 2018): A mixed-use development that would require amendments to the Hilltop Master Plan to allow for increased residential density and decreased commercial square footage (9,000 sf of commercial space, and 140 multi -family units where 116 multi -family units and 26,180 sf of commercial is currently allowed). Joerger Ranch Specific Plan Rezone An application was submitted on December 18, 2017. The formal application is currently under review by the Planning Division. Description: Rezone to expand the Workforce Multi -Family Residential, 20 dwelling units per acre (RMW-20) zoning district by two acres and reduce the Business Innovation (BIZ) zone acreage to increase the number of allowed multi -family residential units from 80 to up to 120. The applicants believe this will help create a more marketable housing project to help kickstart development and upgrades to offsite infrastructure. This proposal also requires an amendment to the Joerger Ranch Specific Plan. Raley's Phase III Housing No preliminary or formal applications have been submitted, however, the developer has spoken with staff and talked publically at Planning Commission and Council hearings about housing as part of a third phase of Soaring Ranch, adjacent to Highway 267. Description: The developers of the Raley's project anticipate requesting to rezone and amend the Joerger Ranch Specific Plan to allow 20 workforce housing units per acre. Approval of a General Plan amendment(s) is also likely required to allow for increased residential density. High Altitude Fitness Gym Residential Town Council Staff Report Page 5 of 8 The Planning Commission recently approved the High Altitude Fitness application on April 17, 2018. The project is within the 10 -day appeal period which ends on April 27, 2018. Description: An approved 27,500 sf gym located behind Dickson Realty at the corner of Northwoods and Donner Pass Road. Includes dedication of a 0.32 acre Multi -Family Residential, 15 dwelling units per acre (RM -15) parcel to the Town of Truckee which would allow for up to four dwelling units. The applicant would consider rezoning a portion of the gym land currently zoned General Commercial (CG) to increase the size of the RM -15 parcel. Approval of a General Plan Land Use Designation amendment would also be required. The Village at Gray's Crossing A preliminary application was submitted on October 13, 2016 and completed on December 20, 2016. A formal application was submitted on November 20, 2017 and is currently under review by the Planning Division. Description: The Development Agreement will likely need to be dissolved and the Specific Plan may need to be amended to incorporate affordable housing requirements. Although the applicant has not requested to rezone the property, staff has discussed the relationship between the Village at Gray's parcel and the remaining undeveloped multi -family parcels (The Cottages site, Parcel D and Parcel F). The remaining parcels are currently encumbered with Mello Roos debt. Revisiting the density and housing types on these parcels would likely increase the likelihood that housing would be constructed. There are likely other sites that could benefit from a House Truckee First Strategy and opening the General Plan Update with a housing focus will allow the community, including developers / building industry professionals, housing advocacy groups, "smart growth" and sustainability advocates, property owners and the Council to make decisions about new housing opportunities sooner than later. Option 2: Limit Urgency Ordinance As an alternative to the "House Truckee First Strategy," the Council could consider the limited scope moratorium described at the previous Council meeting. This option has opposition from the building and associated industries including CATT as was discussed at the previous Council meeting with support from other community members and MAP. Staff continues to be concerned about development activitywithin the community. Projects are being appealed and the appropriateness of permitted uses is being questioned. Businesses are having a hard time hiring employees because there is a shortage of affordable / attainable / achievable housing. Community character, traffic, air quality, competition with Downtown, use saturation (i.e.— too many hotels, gyms, grocery stores), etc. are being discussed as Town -wide challenges. In totality, these are General Plan Update issues. One way to address concerns is to limit the review of land use applications. In conversations with CATT, their expressed concern is that the 2025 General Plan remains valid and should continue to be applied until a new General Plan is adopted. Halting project review can impact good projects that are consistent with the General Plan, can "scare off" investment and affects the livelihood of the building / construction industries and associated professionals. Property owners should be able to decide if they want to pursue development. Town Council Staff Report Page 6of8 In contrast, supporters of a moratorium have requested the opportunity to have community -wide dialogue on land use without the constraints of application processing legalities. In conversations with MAP, making the General Plan a prioritywas key. Allowing the community to revisit community values and how best to implement these values should be the Council's priority. With the 2025 General Plan, consideration of portions of the community, including the proposed Canyon Springs subdivision site, were not included in the General Plan Update dialogue because of an active land use permit application. Although staff believes Option 3 would bring the community together over a robust land use and housing discussion, Council could decide there is merit in limiting the processing of certain types of land use permit applications such as those requesting legislative act approval. Council would want to consider Option 2, if there is interest is pursuing in a narrow / limited focus urgency ordinance to pause certain types of land use applications, such as those requiring legislative acts. Again, staff suggests that all building permits continue to be processed and issued under this option and that all land use applications that meet 2025 General Plan / Development Code and other applicable requirements move forward status quo. Projects requiring legislative acts, subdivisions with more than 100 units or other limited / narrow -focus options could be considered. Reasons to consider for selecting this option include: • Focus efforts on the General Plan Update. • The 2040 General Plan could result in major changes to land uses, densities, circulation decisions and development requirements that could affect properties where land use approval is being requested. A limited land use application "pause" would allow for community dialog and Council direction on land use topics and issues town -wide. • Prevent a "rush" to develop; staff is currently processing an unusually high volume of zoning amendment applications (discussed further below) and it is likely that more will be submitted. Cumulatively these impact land use assumptions made in the 2025 General Plan and may not meet current community values or expectations for future growth. • Prevent decisions that would potentially compromise General Plan Update efforts or that might be inconsistent with the provisions of a future plan. Option 1: Do Nothing and Maintain Status Quo Another option the Council could consider is to direct staff to maintain status quo. Selection of this option means that planning staff would continue to process all land use applications independent of the General Plan Update process. Building permits would be issued status quo. Under this scenario, applications with legislative acts (e.g.-zone change, General Plan Amendment) and land use entitlements (e.g.-Development Permit, Use Permit) would be reviewed under the 2025 General Plan and would be unaffected by community input and / Council action on the 2040 General Plan. Reasons why staff is not recommending this option include: The processing of significant land use applications would limit staff's and the community's ability to focus on the 2040 General Plan. The adopted 2040 General Plan could result in major changes to land uses, densities, circulation decisions and development requirements that could affect properties where land use approval is being requested. Community dialogue about land use (do we have the right mix, should we revisit our land use assessments and change anything), would exclude key properties within Town such as those within the Hilltop Master Plan and Joerger Ranch, on Jibboom Street, at Canyon Springs and likely more. Summary Town Council Staff Report Page 7of8 The General Plan Update and Downtown Specific Plan Update are underway. Deciding what to do with land use permit processing is a Council decision that will shape the General Plan Update and Downtown Specific Plan Update work program and process. The ability to comprehensively assess and check-in on land use town -wide only happens as part of a General Plan Update. Given recent controversy on a variety of land use applications and Council prioritization of affordable housing initiatives, pursuit of a "House Truckee First Strategy" would be a powerful step forward in crafting Truckee's vision for the next planning horizon. FISCAL IMPACT: Depending on which option the Council selects, staff hours vary. Work on a "House Truckee First Strategy" can be combined with Housing Element Update and other General Plan Update efforts. There would be some decrease in planning revenue as hours spent on the processing of certain land use permit applications would be shifted to a non -revenue -generating General Funded approach (e.g.-the Town takes the lead in public engagement and environmental review). PUBLIC COMMUNICATIONS: Standard Town Council Agenda posting with additional outreach to the Contractor's Association of Truckee Tahoe (CATT), Mountain Area Preservation (MAP), and applicants, developer representatives and property owners of land discussed in this staff report. Community engagement and outreach are a significant component of a General Plan Update process and once initiated by Council will encompass a variety of outreach methods. ATTACHMENTS: 1. February 13, 2018 Town Council Meeting Minutes http://Iaserfiche.townoftruckee.com/weblink/0/doc/59315096/Pagel .aspx 2. February 13, 2018 Town Council Staff Report http://Iaserfiche.townoftruckee.com/weblink/0/doc/59310403/Pagel .aspx Town Council Staff Report Page 8 of 8