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8c - Housing Action Plan Implementation Code AmendmentsCODE AMENDMENTS HAPI - HEARTLAND ECOMMENDATIONS City Council Public Hearing 16 May 2023 POLICY QUESTION Should the City Council adopt various amendments to Title 19 FWRC that are responsive to the study conducted by Heartland, LLC as part of implementation of the Housing Action Plan? 1. Expand the Multi Family T ption (FWRC Revisions to MFTE have 3.30.030) to th nity Business (BC) zone; different procedural requirements than Title 19 2. Red e amount of ground floor non- residential space that is required; 3. Increase building height within 100 feet of single family for the BC zone; 4. Reduce the parking requirement for the BC zone; 5. Make consistent the open space requirement and allow for a fee in lieu of option; 6. Allow stormwater to be placed in vaults within the BC zone; 7. Provide predictability for school impact fees; 8. Remove e City's inclusionar requirement; and, 9. Remove the 'ctions on buildinaloilmo Proposed amendments for consideration No proposed amendments No proposed amendments No proposed amendments at this time A change to Development Standards -planned for 2024 Proposed amend consideration endment for consideration April - LUTC May - LUTC May - Staff refinements on Inclusionary Requirements and School Impact Fees May City Council - Public Hearing & 1st Reading June - Ordinance adoption Jun - provide Ordinance to Commerce to compl grant requirements _ IA-'. Process tieartland's Recommendation: Reduce the amount of retail/commercial space required and provide clarifications to the wording. The proposed amendments to BC (Use Table Note 3), CC-F (Use Table Note 2) and CC-C (Use Table Note 3) will reduce the requirement f round floor retail /commercial space. In a ition, the proposed amendments clarify re the retail/commercial space is to be Gated. Ground floor Retail o adjacent to primary vehicular access Ground floor Retail BC & CC-F 40% along primary street frontage ,A qw PRIMARY VEHICLE ACCESS N, T57o of Ground floor plate & 50 feet from intersections t _ a 7 .. L i RETAIL 2 —rA Ground floor Retail CIC-C 1517o of groundfloor of each building, and at street corners Heartland's Recommendation: Provide reasonable school impact fees and some level of predictability for developers. School Impact fee Predictability parrs: 1. For Studio, 1 & 2 bedroom in City -Center & BC zones: School Impact fee is $0. 2. For larger units in the City Center & BC zones and in the rest of the City, set a cap of: a. $3,604 for single family b. $2,222 for multi -family 90Allow for 5% or ENR index for inflation annually (whichever is lower) starting in 2025 Vesting %..0 School Impact fee Predictability H mmendation: -- e inclusionary requirement (affordable housing) does not provide any incentive for the developer and should be removed. Staff: The inclusionary requirement allows for mixed -income projects. Removing the arking requirement for the inclusionary its lessens the cost for the developer hile allowing for the mix of incomes to remain. Inclusionary requirement Example of Exclusionary Requirement 300 Unit Apartment Building Inclusionary Requirement (FWRC 19.1 10.010) = 5% = 15 units 2 bedroom @market (80% AMI) _ $2,082/mo 2 bedroom @ 50% AMI = $1,302/mo Difference = $780/mo $780/mo x 15 units = $11,700/mo $11,,700/mo x 12 mo = $140.,000/yr $140,000/yr x 50 yrs = $7M FWRC 19.80.130 - Criteria for Development Regulation Amendment 1. The proposed amendment is consistent with the applicable provisions of the comprehensive plan. 2. The proposed amendment bears a substantial relationship to public health, safety, or welfare, and 3. The proposed amendment is in the best interest of the residents of the city PLANNING COMMISSION ACTION Consistent with the provisions of FWRC 19.80.240, the Planning Commission recommended approval of the proposed code amendments the City Council incorporating additional clarifications to the proposed revisions relating to ground floor non-residential requirements; and, increasing predictability for the school district while preserving City Center incentives Mayor's Recommendation: Approve Option 1 - Set the Public Hearing and approve the proposed code changes following the hearing 4F f QUESTIONS?