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
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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.