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
187
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
189
Staff Memorandum Business Meeting – 09/06/2017
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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Staff Memorandum Business Meeting – 09/06/2017
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
191
Staff Memorandum Business Meeting – 09/06/2017
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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Staff Memorandum Business Meeting – 09/06/2017
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.
193
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.
195
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
Council Focus - Negotiated
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;
Council Focus - Negotiated
196
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;
Council Focus - Negotiated
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
Technical – Ordinance and LUMO
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
Technical – Ordinance and LUMO
197
Outline of Agreement
West Rosemary Development Guide
Summary of Council Public Hearings
Summary of Community Meetings Next Steps
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
Council Focus - Negotiated
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
Technical – Ordinance and LUMO
198
Outline of Agreement
West Rosemary Development Guide
Summary of Council Public Hearings
Summary of Community Meetings Next Steps
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
Technical – Ordinance and LUMO
18 Solid Waste Management and recycling
Technical – Ordinance and LUMO
19 Utilities bury utility lines; screen infrastructure
Technical – Ordinance and LUMO
20 Stream buffers Technical – Ordinance and LUMO
21 Trees and landscaping require street tree plantings 20-30 feet apart
Technical – Ordinance and LUMO
22 Sedimentation Technical – Ordinance and LUMO
199
Outline of Agreement
West Rosemary Development Guide
Summary of Council Public Hearings
Summary of Community Meetings Next Steps
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
Technical – Ordinance and LUMO
200