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Callahan Subd Devel AssistanceMEMORANDUM September 9, 2003 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager City Assistance to Facilitate Development of Callahan Subdivision A request was received on June 10, 2003 from Joel Callahan, President of Callahan Construction, Inc., for City assistance to facilitate development of his proposed Callahan Subdivision on Seippel Road, a new mixed-use subdivision that would include affordable owner-occupied housing. Planning Services Manager Laura Carstens is submitting staff recommendations for City Council review and approval. I concur with the recommendations and respectfully request Mayor and City Council approval. Michael C Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Laura Carstens, Planning Services Manager MEMORANDUM September 8, 2003 TO: FROM: SUBJECT: Michael Van Milligen, City Manager Laura Carstens, Planning Services Manager City Assistance to Facilitate Development of Callahan Subdivision Introduction This memo transmits the staff recommendations in response to a June 10, 2003 request from Joel Callahan, President, Callahan Construction, Inc. for City assistance to facilitate development of a new mixed-use subdivision that would include affordable owner-occupied housing. He has asked for financial assistance for the development of his proposed Westbrook Subdivision on Seippel Road, in conjunction with rezoning, platting and annexation. This memo reiterates the information provided in my June 25, 2003 memo to you with a copy to Mr. Callahan. The timing of Mr. Callahan's subdivision has progressed to the point where we need to have the City Council approve the City assistance to facilitate development of Westbrook Subdivision, so that City staff can prepare a development agreement reflecting that assistance and the related conditions to be placed on Mr. Callahan's property. Discussion Joel Callahan requested annexation of his 40-acre parcel east of Seippel Road and north of the Dubuque Industrial Center West. This request was concurrent with rezoning to a combination of CS Commercial Service and Wholesale District and R-2 Two-Family Residential District. He is proposing a phased development. The housing would be in the $100,000 to $140,000 price range. The City Council approved Mr. Callahan's rezoning and annexation requests on August 18, 2003. The Zoning Advisory Commission approved the preliminary plat on August 7, 2003. The final plat has been submitted for City Council approval. Callahan Assistance Request September 8, 2003 Page 2 He has also requested annexation of the 80 acres that he owns west of Seippel Road and north of the Dubuque Industrial Center West concurrent with rezoning to CS Commercial Service and Wholesale District and LI Light Industrial District. The Zoning Advisory Commission will reconsider this rezoning request on October 1, 2003. Recommendation Mr. Ca~lahan's proposal is in italics below. The City staff recommendations follow items 1 through 16 as listed in Joet Callahan's letter of June 10th. These recommendations are based on the Affordable Housing Task Force Report. They are consistent with the City financial assistance recently approved by the City Council for Eagle Valley Subdivision, another affordable owner-occupied housing development on Roosevelt Road. Staff has also provided recommendations in response to questions posed by Mr. Callahan to the City Manager, which are items 17 through 20. 1. Callahan Construction, Inc. requests to allow the following changes: a. 50' x 100' sinqle-family residential lot. The Zoning Ordinance allows these lot dimensions in the R-2 District. 42' r~qht-of-way for streets in IR-2. Consistent with the Task Force report, staff recommends approval, in conjunction with items 1.c. and 1.e., and provided the developer meets the parameters for affordable owner-occupied housing. 27' city streets in R-2. Consistent with the Task Force report, staff recommends approval of this street pavement width, in conjunction with items 1.b. and 1.e., and provided the developer meets the parameters for affordable owner-occupied housing. d. Street paving to be 4" asphalt with ~4" base stone or 6" concrete and 4" base stone in R-2. Staff recommends approval for the concrete pavement with a ¼" increase to 6¼" concrete and 4" base stone, which is the City standard. Staff is not able to recommend approval of the requested 4" asphalt and 14" stone base, because the City standard is 7" asphalt and 4" base stone. Parkinq on one side of the street in R-2. Consistent with the Task Force report, staff recommends approval, in conjunction with items 1 .b. and 1 .c., and provided the developer meets the parameters for affordable owner-occupied housing. 8" PVC SDR26 sanitary sewer mains with 4" cast iron laterals for the entire development. Consistent with the Task Force report, staff recommends approval for the R-2 lots, except the R-2 lots adjacent to the City's future industrial park at Callahan Assistance Request September 8, 2003 Page 3 the end of the cul-de-sac. This approval is conditional on the development agreement and rezoning including the provision that there can be no underground storage tanks within 300 feet of any of the R-2 lots that are adjacent to the CS lots. City standards require this 300-foot separation for PVC pipe to prevent possible chemical contamination from commercial/industrial sites. 8" PVC C900 water mains for the entire development, except for the east part of Phase II cul-de-sac. Staff supports the installation of C900 DR14 PVC pipe with the same recommendation as 1. f. above. Waive sewer interceptor fee for the F~-2 area, $10,000.00. Consistent with the Task Force report, staff recommends approval, provided the developer meets the parameters for affordable owner-occupied housing. 3. Loan for sewer interceptor fee for the CS portion, $~0,000.00. Assistance for commercial development is not included in the Task Force report. In this case, however, staff recommends that the interceptor fee be collected by the City in installments as lots are sold, with a balloon payment being made in 5 years. We are recommending this loan because the City has already incurred the cost of the sewer interceptor with the construction of the industrial park. 4. Water main along Seippel, $11.00 per lineal foot. Loan for R-2 portion 734.82 lineal feet at $1 ~.00 = $8,083.02. CS Portion 598.55 lineal feet at $1 ~.00 = $6,584.05 to be paid at start ofpro/ect. Consistent with the Task Force report, staff recommends a loan for the water hook up fees for the R-2 lots only, to be paid back as these lots are sold, with a balloon payment at the end of 5 years. This connection charge would be prorated by the number of lots in each phase of the subdivision. The extension of this water main from the Dubuque Industrial Center West to the north property line of Callahan's property along Seippel Road is estimated to cost $99,550. Staff recommends that the fees for the CS section be paid as they normally are, at the start of the project. 5. City to furnish and install the loop for water service between 1~-2 and CS. Staff does not recommend that the City furnish this water main loop from Commerce Ct. in the CS portion to Trade Winds Ct. in the R-2 portion. This water main loop will support a second feed to the commercial section. It will improve fire flows and reduce the potential amount of down time for the operation of the future businesses in this area. This loop provides no benefit to the residential portion, which already has adequate loops. 6. Waive development service application fees for the development. Consistent with City practice for annexations, staff recommends waiving the $2,460 in development Callahan Assistance Request September 8, 2003 Page 4 service application fees for the development. This includes the rezoning fee of $1,000 and the preliminary plat fee of $1,460. 7. Loan for sewer main for Phase I of the tR-2 section $115,000. Consistent with the Task Force report, staff recommends that the City finance this cost in the same manner as it financed the Harvest View development. The developer would make prorated repayments as R-2 lots are sold, with a 5-year balloon payment for the remaining balance. Loan for collector portion of the sanitary sewer through the R-2 section to the north property line, $30,000.00. Consistent with the Task Force report, staff recommends that the sewer extension costs to be paid back as R-2 lots are sold, and a balloon payment at the end of 5 years. Loan for extension of two collectors through CS to feed the R-2 portion, $55,000.00. Two sanitary sewer collectors must be extended through the CS section to reach the R-2 zone to the north. Although these lots are for commercial developments, not for owner-occupied housing, staff recommends approval for interest-free financing. This recommendation is consistent with the Task Force report, because without these extensions, the R-2 area could not be served with City sewer. The City would recoup its cost through prorated repayments as the R-2 lots are sold, with all monies repaid in 5 years. 10. Loan for R-2 internal water main and service lines Phase I, $120,000. Consistent with the Task Force report, staff recommends that the water installation costs to be paid back as R-2 lots are sold, with a balloon payment at the end of 5 years. The Water Department has $150,000 available; however, $75,000 has been approved by the City Council as financial assistance to Eagle Valley Subdivision. A $75,000 loan is recommended for Mr. Callahan. 11. Purchase and install playground equipment for an approximately 3-acre park. To take deed of property and maintain ground. Consistent with the Task Force report, staff recommends budgeting $150,000 for a small pavilion, playground equipment, grading and seeding to create a neighborhood park. The park would be completed after the public street to the park is installed, provided that the developer makes 1-2 acres of the parkland flat and usable. This would be at least 6 years out in the CIP. 12. City of Dubuque, furnish and install drain tile behind the curb. Consistent with current City practice and with the Task Force report, staff recommends approval. f3. Credit of $4,500.00 for 17' strip of land to widen Seippel Road. The right-of-way (ROW) width of Seippel Read in the City is 100 feet to accommodate the access improvements made for the Dubuque Industrial Center West. In the County, the Callahan Assistance Request September 8, 2003 Page 5 ROW narrows to 66 feet. Extending Seippel Road along the Callahan property would require the t00 feet of ROW. This extra ROW is approximately 0.5 acres on the east side of Seippel Road. The current City policy is to not compensate developers directly for right-of-way to be dedicated to the City. Staff recommends that the City waive an equivalent amount of the sewer interceptor fee for the CS portion to support the creation of affordable owner-occupied housing. This indirect compensation would not apply to the extra ROW needed on the west side of Seippel Road for the 80 acres that Mr. Callahan owns. 14. Rezoning and annexation of Callahan's 80 acres located on the west side of Seippel Road and access off of the end of Chavenelle Road. The north portion to be rezoned CS and the south portion to be rezoned IJqht Industrial Staff would recommend approval; however, rezoning is subject to a public hearing process and City Council decision. No credits, waivers, or loans are anticipated for these 80 acres. 15. The City of Dubuque to extend their utilities to the property line between Callahan and the City of Dubuque at the City of Dubuque's expense. These are short extensions that would be accomplished with the extension of the existing water main and sewer collector north from the Dubuque Industrial Center West. Extension of utilities to the property line is standard practice required of private developers by the City. 16. To make a commitment for assistance with Phase 2 of the pro/ect for Spring 2005, Internal Water $100,000.00 and Internal Sewer $¢30,000.00 Staff cannot recommend this commitment or guarantee this amount of funding will be available in FY05. The Water Department has $150,000 budgeted in FY04 for the revolving loan fund. The Engineering Division has $560,000 budgeted in FY04 for the revolving loan fund. Subsequent years' funding of $50,000 each year is budgeted to come from loan repayments from housing developments. 17. Would City have any conditions on rezoninq of 40 acres on east side of Road? CS zoning currently requires screening of outdoor storage. Staff would require a condition of rezoning on the east side of Seippel Road that screening be consistent with the City property in Dubuque Industrial Center West that is on the west side of Seippel Road. This is less than the much higher standard of the east side, but more than the site development standard in the Zoning Ordinance. Attached is the section of the Dubuque Industrial Center West PUD ordinance that describes the additional regulations for exterior storage that apply throughout the PUD, which staff recommends also be required for the Callahan property. Also attached is the PUD conceptual development plan that shows the location of the various zones. Callahan Assistance Request September 8, 2003 Page 6 CS Commercial Service and Wholesale District The outdoor storage requirements for any commercial or industrial zone, including the CS District, are listed in the Site Development Standards of the City of Dubuque's Zoning Ordinance. These standards require that all outside storage "...shall be permanently screened from view to a height of at least 6 feet and so constructed as to prevent accidental dispersal of the material contained therein." This regulation means screening must have 100% opacity. Maximum height is limited by wind load requirements of the Building Code. Color and materials are not specified. Zone "E"- West Side of Dubuque Industrial Center West PUD Exterior storage in this zone is prohibited on lots fronting Seippel Road. Elsewhere in Zone "E" outdoor storage is limited to raw or finished goods, and equipment, in the rear or side yards. Front yard storage is prohibited. Screening materials in Zone "E" must be similar in color to the building, 100% opacity, and no more than 15 feet in height. 18. Would the City require access be required to Dubuque Industrial Center West from Mr. Callahan's 40 acres on the east side of Seippel Road? No, the City would access the property with a box culvert in Dubuque Industrial Center West. 19. If the property was annexed, would the City allow extension of Chavanelle Drive from Dubuque Industrial Center West to the westerly 80 acres? Yes. 20. What will the City of Dubuque require for the guarantee to develop affordable, housinq? Staff recommends that the guarantee for development of affordable housing follow the parameters of the Affordable Housing Task Force Report, with the financials as updated by Housing and Community Development Director David Harris. As stated in Mr. Harris' report, the updated price of a single-family home for the target household is approximately $134,000 with current interest rates. Staff is not recommending the use of the home's sale price or the income of the household as parameters to be met for the affordable housing development because they would be time-consuming and difficult to monitor. Staff is recommending parameters derived from the Task Force report, with the updated criteria in Mr. Harris' report, which would be included in a development agreement for an affordable housing development. The terms of this development agreement would be transferred to the buyer of any vacant lots. The intent of these parameters is to encourage the construction of owner-occupied housing affordable to the target households. Parameters for Affordable Housing. These parameters are required to be met for at least 80% of the lots in an affordable owner-occupied residential development, whether it is single-family homes or two-family residential units. No requirements Callahan Assistance Request September 8, 2003 Page 7 would be placed on the remaining 20% of lots in the subdivision. Limit on Sale Price of Lot To qualify as affordable, lots in the R-2 portion cannot sell over $26,500. (This price has been adjusted based on the Consumer Price Index from the original price of $25,000 in the 2001 Task Force Report.) If Callahan Construction, Inc. builds the homes, then this condition would not apply. Minimize Lot Frontage To qualify as affordable, the lot frontage in the R~2 portion must be platted between 50 and 75 feet wide and the maximum lot area cannot exceed 6,500 square feet. Limit on Size of Housing Unit To qualify as affordable, the housing unit cannot be over 1,200 square feet of livable space. Surcharge for Extra Square Footage The builder of any house of more than 1,200 square feet in the R-2 portion must pay to the City a $25 surcharge per square foot of livable space above the 1,200 square foot threshold. This livable space should not include any improvements to the basement or garage. The surcharge would be collected in a revolving loan fund to finance affordable housing projects. Bud,qet Impact The budget impacts of the staff recommendations for City assistance to facilitate the affordable owner-occupied housing in Callahan Subdivision are as follows. As shown in the attached chart, the amount of City assistance requested by Joel Callahan is $834,593. The amount of recommended City assistance totals approximately $559,543 based on availability of funding for Phase 1. Commitments for Phase 2 have not been quantified because these funds are dependent on loan repayments. The portion of this financial aid in the form of waivers is approximately $16,960. This includes $10,000 for the R-2 sewer interceptor fee, $2,460 in development service application fees for the entire project, and $4,500 for the CS sewer interceptor fee. Direct City expense to support this development is over $249,550. Of this total, budgeting $150,000 for park development is recommended. The City also will spend an estimated $99,550 to extend the existing water main along Seippel Road. In addition, the City will pick up the unknown expense of drain tile installation for all streets in the subdivision. Callahan Assistance Request September 8, 2003 Page 8 Staff has recommended City assistance of $293,083 through interest free loans, with $210,000 for sanitary sewer costs and $83,083 for water main costs. Loan payments would be made as lots are sold, with a balloon payment in 5 years. The amount would be prorated on the number of lots in each phase of the subdivision. Action Step The requested action step is to provide these recommendations to the City Council for their review and approval. Attachments CC Joel Callahan, President, Callahan Construction, Inc. David Harris Housing and Community Development Director Pauline Joyce, Administrative Services Manager Bill Baum, Economic Development Director Bob Green, Water Department Manager Gil Spence, Leisure Services Manager Mike Koch, Public Works Director Gus Psihoyos, Assistant City Engineer Kyle Kritz, Associate Planner CITY ASSISTANCE TO FACILITATE DEVELOPMENT OF CALLAHAN SUBDIVISION Item Subdivision City Dept. Service ~,mount of City ~,mount of City I Form of Existin~ Comments Section Service Component Assistance Assistance . Assistance Program Requested 3,ecommended 2 R-2 Sewer Interceptor $10,000 $10,000 Waiver No Hook up fee 3 CS Sewer Interceptor $10,000 $10,000 Loan Yes Hook up fee 4 R-2 Water Ext. Main $8,083 $8,083 Loan Yes Hook up fee 4 Seippel Rd. Water Ext. Main $99,550 $99,550 City Yes expense 5 Water main . Water Ext. Main Unknown None None No Commercial loop: R-2 to CS development 6 Entire site Planning Dev. Fees $2,460 $2,460 Waiver Yes 7 R-2 Sewer Main/Lateral $115,000 $115,000 Loan Yes Phase I only 8 R-2 Sewer Collector $30,000 $30,000 Loan Yes 9 CS Sewer Collector $55,000 $55,000 Loan Yes Supports R-2 10 R-2 Water Int. Mains $120,000 $75,000 Loan New Limited funds available 11 Park Park Div. Park dev. $150,000 $150,000 City No Needs a CIP expense 12 All streets City Eng. Drain tile Unknown Unknown City Yes expense 13 Seippel Rd. City Eng. ROW $4,500 $4,500 Waiver No CS sewer Interceptor 14 W. 80 acres 15 Extend City Water & Extend to N/A N/A City Yes Included above utilities Sewer prop. line expense 16 Phase 2 Water Internal $100,000 Depends on $ Loan Yes Supports R-2 available 16 Phase 2 Sewer internal $130,000 Depends on $ Loan Yes Supports R-2 available ZONE ~OUNI)AR¥ ACRE~ ,!00' OWNER ,' COUNTY : .......... ~ ...,..~ ? / DF,~,DUBU [~OUN ORDINANCE NO. -98 -'" Page 18 e) Motion: No signs may include any device or means, mechanical, electrical or natural, which shall cause any motion of the sign panel or any part thereof. No flashing lights or changing colors shall be allowed. F. Exterior Storage Regulations: Exterior storage, where allowed, shall not encroach into a front yard. A front yard may exceed the required front yard setback.. Exterior storage shall be in accordance with the following regulations: Allowable Allowable Allowable Minimum Maximum Products Location Screening Opacity Height of Stored Matedals Screening Zone A Prohibited Zone B Prohibited Zone C Finished Goods Rear or Side Wood, 50% 10 feet yards masonry, brick, or stone similar to building color Zone D Raw or Rear or side Similar to 50% 12 feet f-mished goods; yards building equipment color Zone E* Raw or Rear or side Similar to 100% 15 feet finished goods; yards building equipment color Zone O Pmhiblted ~Exteridr storage B prohibited on lots fronting Seippel Road. 1) Exterior storage of materials which could be blown into the air or strewn about by the wind shall be prohibited. 2) The ground area coverage of exterior storage areas shall be the area contained inside the required screening. This area shall be considered to be a building related feature for purposes of calculating total land area coverages. ORDINANCE NO. -98 Page 19 3) Exterior storage must be screened from view from adjacent public right-of- way. The screening height shall be measured from the ground level outside the line of the screen. Screens built on sloping grades shall be stepped so that their top line shall be horizontal. 4) Required screening is intended to buffer surrounding property from the negative visual impact created by the storage of raw or finished goods, materials and equipment that can adversely impact the value of adjacent property. 5) The City Planner may grant a waiver for screening to exceed the maximum height allowed, when topography or height of individual finished products or equipment could make it impossible to completely screen a storage area from every vantage point. The City Planner may not grant waiver in maximum screening height for raw materials or stacked goods. 6) All exterior entrances to a screened storage area shall be provided with a gate or door of similar design to that of the screen. 7) Long term storage of products or materials in semi trailers is prohibited. Exterior Trash Collection Area Regulations: ,,/' 1) Exterior trash collection areas shall include collection bins, dumpsters, and similar waste receptacles for the short-term storage and collection of trash. Trash shall include garbage, scrap, recyclables, debris, and similar materials. 2) The storage of trash shall be limited to that produced by the principal permitted use and accessory uses of the lot. Exterior storage of trash which could be blown into the air or strewn about by the wind shall be prohibited. 3) The ground area coverage of exterior trash collection areas shall be the area contained inside the required screening. This area shall be a considered a building-related feature for purposes of calculating total land area coverages. 4) Exterior trash collection areas shall be located in rear or side yards only. Exterior trash collection areas shall not encroach into a front yard. A front yard may exceed the required front yard setback.