187 item overview agenda

Item Overview Business Meeting – 09/06/2017

Agenda # 13

Subject: Determine Approach for Amity Station Development Agreement and Authorize Town

Manager and Town Attorney to Proceed with the Selected Process, Identify Topics and

Determine Fees.

Staff:

Ben Hitchings, Planning Director

Judy Johnson, Interim Operations Manager

Aaron Frank, Senior Planner

Kay Pearlstein, Senior Planner

Department:

Planning and Development Services

Overview: This Resolution responds to the Council resolution1 requesting options for pursuing a

Development Agreement for the proposed Amity Station at 318-326 West Rosemary Street. The

Council has reviewed three Concept Plans for the property. The latest was reviewed on May 15,

2017.

Recommendations

That the Council:

Determine the process to be followed for a Development Agreement for Amity

Station;

Authorize the Town Manager and Town Attorney to develop a list of topics to be part

of the negotiation for Amity Station consistent with the issues discussed this evening;

and

Authorize the Town Manager and Town Attorney to establish the Development

Agreement fee consistent with this evening’s discussion.

Decision Points

Determine a process for negotiations for a Development Agreement on Amity Station,

whether a Council Committee, a Facilitated Council Subcommittee, an Administrative

Focus, or a different approach;

Provide guidance to the Town Manager and Town Attorney on the Amity Station policy

topics to be negotiated; and

Key Issues

What are the Council’s interests for the review process?

What level of involvement does the Council wish to have in the negotiating and drafting

of a Development Agreement prior to formal consideration by the Council and public

hearing?

When is public input on the process and content requested and expected?

1 http://chapelhill.granicus.com/MetaViewer.php?view_id=7&clip_id=3168&meta_id=167495

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http://chapelhill.granicus.com/MetaViewer.php?view_id=7&clip_id=3168&meta_id=167495

http://chapelhill.granicus.com/MetaViewer.php?view_id=7&clip_id=3168&meta_id=167495

Fiscal Impact/Resources: The financial impact of a Development Agreement process depends

on the demands on Council resources, staff resources, outside consultants, time, and accessory

costs (information collection, sharing, meeting costs, etc.). The Town Manager and Town

Attorney could propose a process for identifying costs associated with a preferred process and a

method for covering those costs. A guiding principle is that the Development Agreement fee

covers the direct costs of the negotiation phase. The staff memorandum includes a base fee to

begin to recoup the costs.

Where is this item in its process?

Council Goals:

☒

Create a Place for Everyone ☒

Develop Good Places,

New Spaces

☐

Support

Community Prosperity ☐

Nurture Our Community

☐

Facilitate Getting Around ☐

Grow Town

and Gown Collaboration

Attachments:

Staff Memorandum

Resolution Authorizing Town Manager and Town Attorney to initiate

negotiations

Synthesis of input on proposed Amity Station project

Decision to enter Negotiation

Negotiation Phase

Decision on Agreement

Completion of Project

188

Staff Memorandum Business Meeting – 09/06/2017

Subject: Determine Approach for Amity Station Development Agreement and Authorize Town

Manager and Town Attorney to Proceed with the selected process; identify topics and determine

fees.

Staff Recommendation:

Staff recommends that the Council adopt the attached resolution authorizing the Town Manager

and Town Attorney to proceed with a negotiation process based on guidance provided by the

Council in this evening’s discussion for Amity Station. All negotiation with the developer would

build on the guiding principles and design guidelines in the West Rosemary Street Development

Guide1 and community input received during the developer’s Concept Plan phase.

Decision Points

Determine a process for negotiations for a Development Agreement on Amity Station,

whether a Council Committee, a Facilitated Council Subcommittee, an Administrative

Focus, or a different approach;

Provide guidance to the Town Manager and Town Attorney on the Amity Station policy

topics to be negotiated; and

Development Agreement Process

1 http://www.townofchapelhill.org/town-hall/departments-services/town-manager/downtown-2020-strategy/rosemary-development-guide

Tonight’s Decision

•Process

•Content

•Fees

Comprehensive Review

•Traffic

•Community Benefits

•Council/Community Input

Council Negotiation

•Review Draft Agreement

Decision

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http://www.townofchapelhill.org/town-hall/departments-services/town-manager/downtown-2020-strategy/rosemary-development-guide

http://www.townofchapelhill.org/town-hall/departments-services/town-manager/downtown-2020-strategy/rosemary-development-guide


This memorandum presents an overall framework for the Council’s consideration. The primary

aspects of the framework are:

Process;

Content;

Public Outreach; and

Fees.

We anticipate that the Amity Station project will be a Single-Building/One-Phase Project for

which considerable public input has already been received. As a result, staff recommends that

the following content and process elements be considered for this Development Agreement.

1. Process

We offer the Council the following options to consider for the Amity Station Development

Agreement review and negotiation:

A. Council Committee: A Council committee composed of the full Council would use a

work session format to provide guidance to the Town Manager and Town Attorney. The

Town Manager and Town Attorney would work with the Development Team and bring

proposed solutions to the Council on the policy topics. Council committee meetings

would be public and conducted outside of the regular Council meeting schedule.

B. Council Facilitated Subcommittee: A Council subcommittee composed of three or

more appointed Council members would work with a third-party facilitator to negotiate

directly with the Development Team. The subcommittee would authorize the Town

Manager and Town Attorney to draft specific language for the Development Agreement.

Similar to the Council Committee process, the meetings would be public and conducted

in a work session format.

C. Administrative Focus: The Council would provide guidance on policy issues to the

Town Manager and Town Attorney, who would work with the applicant to draft a

Development Agreement for the Council to review at a public hearing before considering

the agreement.

The following chart indicates some of the pros and cons associated with each of these three

approaches. Alternative approaches or a hybrid approach that includes elements of the three

proposed options are possible as well.

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Focus Pros Cons Other Considerations

Counci

l C

om

mit

tee Council ability to direct

the Town Manager and

Town Attorney;

Enables efficient

negotiation with unified

voice;

Uses familiar format.

Public involvement may

be limited, but an

extensive public

involvement process has

already occurred;

Limited check-in points

with the community the

process is underway.

Limited direct Council

contact with developer

although the Council has

provided comments on

three Concept Plan

applications.

Counci

l F

acil

itat

ed

Subco

mm

itte

e

Negotiations occur in

smaller groups where

discussion is easier than in

larger setting;

Professional facilitation of

negotiations by neutral

third party;

Committee could

potentially meet sooner

and more frequently than

full Council, shortening

the overall timeline.

Public involvement may

be limited, but an

extensive public

involvement process has

already occurred;

Limited check-in points

with the community;

Some final approval

uncertainity because full

Council not involved.

Direct negotiation between

developer and Council

Subcommittee.

Adm

inis

trat

ive

Focu

s

Technical fields (traffic

analysis, community/fiscal

benefits, etc.) to be

contracted with experts;

Council ability to direct

the Town Manager and

Town Attorney.

Public input is limited to

the Public Hearing process

and to input that occurs

prior to the process.

Limited direct Council

contact with developer

although the Council has

provided comments on

three Concept Plan

applications.

In all process options, limited staff resources are a consideration.

2. Content

A. Policy Discussions: Through a review of public meetings that occurred over the past two

years, including multiple Concept Plan reviews and the West Rosemary Development

Guide process, we have identified the following key issues for Council’s consideration

with Amity Station:

Scope of Development (height and density)

Permitted uses and mix of uses

Community Benefits including affordable housing

B. Technical Requirements: These are items that could be a technical or staff

recommendation with public input and then brought to Council. Technical Focus items

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would generally default to existing standards in the Land Use Management Ordinance or

in the Town Code; and

C. Legal Requirements: Items that need to be included in the Development Agreement as

North Carolina statutory or factual requirements would be noted as legal team

responsibilities.

3. Public Outreach

At a minimum, public outreach would include legal requirements associated with a rezoning, as

the Development Agreement process in Chapel Hill includes a rezoning. This requirement is

limited to legal notice, zoning signage, and mailed notice to property owners within 1,000 feet of

subject property letting them know of the rezoning request and the date of the public hearing. We

recommend the public outreach include the rezoning requirements, and additional efforts to be

identified at the outset of the process. Opportunities for public comment could be provided at any

Council committee or subcommittee meeting. A formal public hearing would be required prior

to any final vote on a proposed development agreement.

4. Recommended Fee Structure

Negotiating a Development Agreement can involve significant cost in terms of staff time. The

application fee may be structured to recover some or all of the costs associated with these

activities. Currently, Council negotiates the fee for a Development Agreement. Recognizing that

the needs of a Development Agreement may be outside of expected scenarios, we recommend

retaining the negotiated aspect of the Development Agreement fee but offering the following

guidance to consider during the negotiation.

The fees for past Development Agreements have been paid in installments. We recommend that

one-third (1/3) of the fee be submitted as part of the application submittal requirements. The

second 1/3 payment would be billed to the applicant based on staff accounting of time spent, and

the remaining payment would be paid prior to proceeding to Public Hearing. If accounting for

staff time exceeds the anticipated fee, the developer would be billed for the difference.

For comparison, a Special Use Permit fee based on the latest Concept Plan submittal for Amity

Station would be approximately $80,900, along with a rezoning fee estimated at approximately

$1,330.

The recommended Development Agreement fees for Amity Station are:

A base fee of $11,650 plus an additional $45 per 100 square feet of floor area (with no

cap on the fee);

The first payment, one third (1/3) of the fee, to be paid upon submittal and acceptance of

the Development Agreement application;

The second payment to be paid based on billing for an equivalent of one-third of the

anticipated staff time;

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The final payment for the remaining fee to be paid prior to scheduling a Public Hearing

on the Agreement;

All contracted fees (including but not limited to Traffic Impact Analysis, Third-party

facilitation, Community Benefit Analysis/Fiscal Analysis) to be paid by the developer,

with payment due prior to Town contracting with consultant, where applicable;

Rezoning is a necessary component of the Town’s process for a Development

Agreement, costing an additional $1,200 plus $60 per acre proposed to be rezoned (2017-

18 Fee Structure).

Following approval of a Development Agreement by the Council, previous developers have

obtained an administrative Development Agreement Compliance Permit. This administrative

permit ensures that the developer complies with the requirements of the Development Agreement

and could be part of the Council’s negotiation. The fee for this permit would be part of the

negotiated agreement with the Council. The level of detail in the Development Agreement

application will determine the level of additional review necessary as part of the compliance

permit.

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Area Map:

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A RESOLUTION INITIATING NEGOTIATION ON A DEVELOPMENT AGREEMENT

FOR AMITY STATION, AND AUTHORIZING THE TOWN MANAGER AND TOWN

ATTORNEY TO PROVIDE STAFF SUPPORT ON THE EFFORT (2017-09-06/R-8)

WHEREAS, a Development Agreement has been identified as a regulatory tool between the

Town and developers to guide future development; and

WHEREAS, on June 26, 2017, the Council of the Town of Chapel Hill authorized the Town

Manager and Town Attorney to summarize the input provided to date by community

stakeholders on the proposed Amity Station redevelopment project and bring back options for a

Development Agreement process for this project to the Council.

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the

Council:

1. Authorize the Town Manager and Town Attorney to proceed with the identified process

based on Council guidance for negotiations with the Amity Station Development Team

for redevelopment of 318-326 West Rosemary Street; and

2. Authorize the Town Manager and Town Attorney to develop a list of topics for

negotiations, consistent with the issues identified by Council; and

3. Authorize the Town Manager and Town Attorney to establish the Development

Agreement fee, consistent with this evening’s discussion.

This the 6th day of September, 2017.

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Synthesis of Feedback on Amity Station Development Agreement

Outline of Agreement West Rosemary Development

Guide Summary of Council Public

Hearings Summary of Community Meetings Next Steps

Article 1: Statutory Framework Legal Team

Article 2: Definitions Legal Team

Article 3: Recitals Legal Team

Article 4: Terms Legal Team

Article 5: Specific Standards and Mitigation Measures

1 Scale of development maximum of 50' in height with transition to neighborhood

bring building mass to street; height impact on adjacent properties; height vs community benefits; interface with Northside community;

developer has 6-7 story option and 5-6 story option-higher option offers more opportunity for community benefit; visual and solar impact on neighborhood; 6-7 stories too tall; proposed plan is too dense

Council Focus - Negotiated

2 Uses Permitted restrict student housing; senior housing; parking restricted to rear or below building

age restricted housing; student housing


3 Mix of uses

shared retail or office spaces; family-friendly and minority owned businesses especially restaurants; services and goods for children and families;

more activation of Rosemary Street at street level

market rate and affordable rental; market and affordable commercial spaces; dedicated commercial along Rosemary and Nunn; shared residential lobby and amenities on Andrews Lane; not student housing; affordable housing;


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Outline of Agreement

West Rosemary Development Guide

Summary of Council Public Hearings

Summary of Community Meetings Next Steps

4 Housing extensive affordable or elder housing

affordable housing plan needs to be clarified

market and affordable rental housing; % of affordable units; scape and design to be determined by non-profit partner; contribution of land; contribution of soft costs and site work; developer assume approval and construction risk; non-profit not to pay real estate taxes; no public financial support proposed; how will affordable housing be funded, maintained, and integrated into project;


5 Preservation of open space and natural areas

community recreation and public green spaces

use of alleys as public activity spaces; activation of courtyard and Nunn Alley

community courtyard; aesthetic and functional improvements adjacent to Nunn Alley

Technical – Ordinance and LUMO

6 Stormwater management stormwater features within pocket parks


7 Stormwater utility Technical – Ordinance and LUMO

8 Transportation: Transit, Parking, Streets, Sidewalks, Bikeways, and Greenways

raised crosswalks and intersections; public parking spaces; vehicle connection between Franklin and Rosemary east of Shortbread Lofts; traffic calming in Northside; streetscape and lighting plan; bus stop improvements; 10' clear pedestrian zone

Andrew Lane access to adjoining lots; Nunn Alley access to adjoining lots; north-south pedestrian access

impact of traffic on community and town


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9 Fiscal Impact Community Benefits

local and minority-owned businesses; develop community benefits agreement (CBA); contribution to Hargraves; creation of Northside Historical & Cultural Center; neighborhood gateways

understand priorities of neighborhood and entire community; transparency on proforma for development

residential uses that support non-student focused design and affordable housing goals of the neighborhood; mixed-use development that creates opportunities for local businesses and supports the need for entrepreneurship; building design that contributes to and engages West Rosemary Street and is compatible with the scale of the existing neighborhood; connectivity of pedestrian, transit, and bicycle infrastructure; building contained parking for residents and visitors designed to abate the potential parking demand in the neighborhood; offer of a contribution to a real estate tax relief fund to support homeownership in the Northside community for longtime residents; limit age to residents 22 years; no students; too tall; too dense


10 Energy Technical – Ordinance and LUMO

11 Water use, Reuse, and reclamation and utility siting

rain water collection in underground cisterns; rain gardens within street improvements


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12 Design Standards and Public art

encourage community-based public art; public amenities including benches; minor setback above datum line; 90% of building must have a functional entrance onto circulation network (not parking lot); entries into buildings separated 75' or less; ground-level retail clear glass on at least 60% of facade (between 3-8 feet); awnings; pedestrian signage; vary cornice and visual breaks; minimize curb cuts

Rosemary Street ground floor activation; building materials and architectural style

Technical - Develop design guidelines – town staff and applicant using West Rosemary Development Guide – where not compatible – bring to Council

13 Police, Fire, EMS, and facilities safe lighting Technical – Ordinance and LUMO

14 Public Schools Technical – Ordinance and LUMO

15 Recreation areas Technical – Ordinance and LUMO

16 Greenways Technical – Ordinance and LUMO

17 Historic and Cultural features identify location for cultural center; perform a cultural resources plan

Nunn alley as a cultural entrance to the Northside neighborhood


18 Solid Waste Management and recycling


19 Utilities bury utility lines; screen infrastructure


20 Stream buffers Technical – Ordinance and LUMO

21 Trees and landscaping require street tree plantings 20-30 feet apart


22 Sedimentation Technical – Ordinance and LUMO

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23 Neighboring lands, context compatibility, buffers

maintain neighborhood's history and preserve the culture of a diverse, family oriented neighborhood

Council focus - Negotiated and Technical – Ordinance and LUMO

24 Noise Technical – Ordinance and LUMO

25 Lighting safe lighting Technical – Ordinance and LUMO

26 Existing conditions Technical – Ordinance and LUMO

27 Phasing Plan (if applicable) Technical – Ordinance and LUMO

28 Construction considerations Technical – Ordinance and LUMO

29 Annual Report Technical – Ordinance and LUMO

30 Schedule of triggers and thresholds for action


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187 item overview agenda

Documents