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HomeMy WebLinkAbout(0008) IR 20-10471 - ZC-20-090 Azalea West ApartmentsINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10471 pRTE} To the Mayor and Members of the City Council August 25, 2020 Page 1 of 7 a * r VA SUBJECT: REZONING REQUEST ZC-20-090 AND REQUESTED FINANCING 1@7,3 FOR PROPOSED AFFORDABLE HOUSING DEVELOPMENT KNOWN AS AZALEA WEST APARTMENTS In response to a request from the City Council to provide more information concerning two recent requests to rezone certain properties on Azalea Avenue in the Linwood neighborhood, and a request for financing to support an affordable housing project at the same location, staff has prepared this IR to summarize the background for the pending zoning case and the affordable housing development project and to respond to questions raised by the Council. Background The affordable housing development consists of seven (7) properties, 2700 through 2724 (evens) Azalea Avenue, located west of Carroll Street on the north side of Azalea Avenue, consisting of 1.39 acres. The site is adjacent to the West Seventh Urban Village and a portion of the site is in the Cultural District Mixed -Use Growth Center. (See attachment A: Future Land Use Map) Zoning case ZC-20-090 consists of four (4) properties/lots located at 2712-2724 (evens) Azalea Avenue. The lots are currently zoned "A-5" One -Family. Surrounding properties are zoned "UR" Urban Residential, "MU-1" Low Intensity Mixed -Use, Planned Development (PD) 956, which has a base zoning of "UR" Urban Residential, and PD 574 which has a base zoning of "MU-2" High Intensity Mixed -Use. (See attachment B: Zoning Map) Timeline • June 12, 2020: ZC-20-034 was recommended for approval on a unanimous vote of 7-0 by the Zoning Commission after a public hearing. • June 23, 2020: The City Council held a public hearing. Sufficient opposition (over 20%) to the rezoning request was received in conformance with Section 211.006(d) of the Texas Local Government Code to require a three -fourths (supermajority) vote of the City Council to approve the rezoning request. The City Council voted 6-2 in favor of the request which served as a denial because of the requirement of a supermajority vote for approval. • July 13, 2020: An application was submitted to rezone four of the lots located at 2712-2724 Azalea to rezone those properties from A-5 to UR. Because the application was for four lots and not seven lots and for the UR zoning district rather than a PD for MU-1, the application was determined not to be subject to a 12-month delay period and could proceed as a new application. The Zoning Ordinance does not require site plans for zoning districts other than PD zoning districts or Conditional Use Permit ("CUP") overlays. • August 12, 2020: The Zoning Commission held a public hearing for ZC-20-090 for the rezoning of the four lots from A-5 to UR. The Zoning Commission voted to recommend approval of the request to the City Council. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10471 pRTE} To the Mayor and Members of the City Council August 25, 2020 Page 2 of 7 a * r VA SUBJECT: REZONING REQUEST ZC-20-090 AND REQUESTED FINANCING 1@7,3 FOR PROPOSED AFFORDABLE HOUSING DEVELOPMENT KNOWN AS AZALEA WEST APARTMENTS • August 18, 2020: ZC-20-090 was continued by the City Council for one week. As of August 7, 2020, the City has received opposition from more than 20% of neighboring properties to the rezoning proposed to require a super majority vote of Council to approve the rezoning request. Both City staff and the Zoning Commission have reviewed the rezoning request CZ-20-090 and found that the current rezoning request is compatible in use, scale and density with the surrounding land uses and consistent with the Comprehensive Plan's Future Land Use Designation of Urban Residential. Rezoning Application ZC-20-090 The City Council is considering a recommendation of approval from the Zoning Commission to rezone four (4) lots on Azalea Avenue from "A-5" One -Family to "UR" Urban Residential on August 25, 2020. A site plan is not a requirement to rezone property to UR. The Zoning Commission recommended approval of the request by a vote of 8-0-1. Any future development will require the property owner to comply with the UR zoning district development standards and all other applicable development regulations in the Zoning Ordinance and Building Ordinance. Zoning and building plan review will occur once a permit is requested. If a property owner �I�IlMll ll�����g®�11 MINI ��1 0108 in ®01 ®� OEM determines, either before or after submittal for a permit, that they are unable comply with one or more development standards, they may apply for relief from the Board of Adjustment and/or the Urban Design Commission as provided for in the Zoning Ordinance. NOTE: The case was continued by one week at the request of the property owner. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10471 pRTE} To the Mayor and Members of the City Council August 25, 2020 Page 3 of 7 a * r VA SUBJECT: REZONING REQUEST ZC-20-090 AND REQUESTED FINANCING 1@7,3 FOR PROPOSED AFFORDABLE HOUSING DEVELOPMENT KNOWN AS AZALEA WEST APARTMENTS Rezoning Application ZC-20-034 ZC-20-034 was a previous rezoning request for seven properties owned by Panther City Holdings Company, LLC and 2700 Azalea Ave Development Group. The properties are located at 2700 through 2724 (evens) of Azalea Avenue. The request was to rezone the properties from A-5 One -Family and MU-1 Low Intensity Mixed -Use to Planned Development PD Low Intensity Mixed -Use "MU-1". PD districts require a site plan to be submitted as part of the application. Proposed Financing • January 2020: Azalea Apartments, LLC received a resolution of support and $2,500 of local funding from City Council in support of their application for 9% issued by the Texas Department of Housing and Comm 0083 dated 0211812020). Competitive Housing Tax Credits, unity Affairs ("TDHCA") (M&C 20- April 2020: Azalea Apartments, LLC, was tentatively awarded $490,000 of federal HUD funds through a competitive "Notice of Funding Availability" process overseen by the Neighborhood Services Department (NSD). The Community Development Council reviewed and recommended the award in May. As part of the due diligence prior to the award, the development proforma was reviewed and underwritten by Neighborhood Services Department (NSD) staff. An M&C awarding the funding will move forward to Council at a later date. April 2020: Azalea Apartments, LLC began meeting with NSD staff to request a $1,000,000 loan from Fort Worth Housing Finance Corporation (FWHFC). All FWHFC financing is contingent upon the development meeting zoning and building codes at the time of closing, as is normal lending practice. • Late July 2020: Azalea Apartments, LLC was awarded tax credits by TDHCA. Why is this zoning case back again? The property owner applied to rezone four (4) A-5 One -Family lots to Urban Residential UR. The zoning case is strictly a land use consideration for "UR" zoning The request is compatible with the Comprehensive Plan's Future Land Use Designation which is Urban Residential. The application is new and not a reconsideration because ZC 02-090 is request for a different zoning category (UR vs PD-MU-1) and the request was for four (4) of the seven (7) lots requested in ZC-20-034. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10471 pRTE} To the Mayor and Members of the City Council August 25, 2020 Page 4 of 7 a * r VA SUBJECT: REZONING REQUEST ZC-20-090 AND REQUESTED FINANCING 1@7,3 FOR PROPOSED AFFORDABLE HOUSING DEVELOPMENT KNOWN AS AZALEA WEST APARTMENTS Whv doesn't the applicant have a site Dlan? The only rezoning applications in the City of Fort Worth requiring a site plan are Planned Developments and Conditional Use Permits. Therefore, a site plan is not required to rezone the four (4) properties from A-5 to UR To develop on this property, the property owner must meet all City Council adopted development regulations for UR zoning as well as all applicable development regulations in the Zoning Ordinance and Building Code. Conformance with applicable zoning and building code requirements will be determined during zoning and building plan review. On Thursday, August 20, 2020, a concept plan was emailed by the housing developer to the Linwood Avenue Neighborhood Association leaders and City officials were copied on the email. The concept plan of August 20 is attached to this IR. Can the City require a site plan? In this instance, the property owner is requesting to rezone property they own in conformance with established City policy and ordinance. If the proposed affordable housing development was to not continue, the property owner would be able to market and sell the site to another developer to build within the limits of the approved zoning district and the development standards. Any new developer would require site plan approval through the Zoning Commission and City Council prior to receiving building permits. The City Council, in its review of the zoning case, needs to consider all the allowable uses or development types that would be permitted in the requested zoning district and not just the most recent development proposal for the site. The Housing Finance Corporation and other lenders may, nevertheless, require conformance to a site plan as a condition of loan approval. The developer of the proposed housing development submitted a site plan in association with ZC- 20-034. Prior to submitting an application for ZC-20-034, the applicant presented their original site plan to the community at a meeting held on January 7, 2020. The original site plan included 92 units and 89 surface parked parking spaces. After this meeting the developer made changes to the site plan to provide a higher parking space to unit ratio and make considerations concerning on street parking. After submitting an application to rezone for ZC-20-034 the site plan went through three other iterations as it progressed through the legislative process of the Urban Design Commission and Zoning Commission and on May 13, 2020 the developer presented a site plan that had corrected issues brought up during the Urban Design Commission and extended their parking garage to have 100% of their parking be within a structured parking garage. After a continuance by the Zoning Commission at the May 13t" hearing an additional community meeting was held on June 8, 2020 mediated by Assistant City Manager Fernando Costa to attempt to find common ground and consensus on the site plan. This resulted in a more acceptable plan, though consensus was not reached, that was ultimately voted on and approved by the Zoning Commission and denied by City Council in June. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10471 pRTE} To the Mayor and Members of the City Council August 25, 2020 Page 5 of 7 a * r VA SUBJECT: REZONING REQUEST ZC-20-090 AND REQUESTED FINANCING 1@7,3 FOR PROPOSED AFFORDABLE HOUSING DEVELOPMENT KNOWN AS AZALEA WEST APARTMENTS The final site plan review by staff in association with ZC-20-034 consisted of a multifamily development with 80 units and 127 parking spaces. Changes made to that site plan in accordance with the community meeting on June 8, 2020 included restricting the "PD-MU-1" project to only residential uses and providing active space on the ground floor by placing the amenity space and office on the ground floor. Final Reviewed Site Plan for Previous Zoning case, ZC-20-034 L Units L] Parking Garap Are 80 units of housing too many for the neighborhood? The density in Linwood and the overall West 7th area is in conformance with the Future Land Use set out in the City's Comprehensive Plan. The site's zoning would be compatible in use, density, and scale with surrounding land uses and the Comprehensive Plan. Any development proposed for the subject site must meet the use, density, and scale requirements of its approved zoning district. Will the proposed development generate too much traffic? If the previously proposed project continued to develop 80 units on the site, approximately 50 vehicle trips would be added to the system during the peak hour. Currently, West 7t" Street sees 20,000 vehicles a day. Trips may be reduced with the proximity to transit and the propensity for renters of the subsidized housing to take advantage of transit. At this point a traffic study has not been completed and as the project proceeds we would be able to understand demand in more detail. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10471 pRTE} To the Mayor and Members of the City Council August 25, 2020 Page 6 of 7 a * r VA SUBJECT: REZONING REQUEST ZC-20-090 AND REQUESTED FINANCING 1@7,3 FOR PROPOSED AFFORDABLE HOUSING DEVELOPMENT KNOWN AS AZALEA WEST APARTMENTS When will the White Settlement Bridge be opened? According to TPW staff, the White Settlement Bridge should be open to traffic by the end of December 2020. Will the rezonina create storm water and floodina issues for the neiahborhood? No matter the size of the development in the FEMA floodplain, a floodplain permit would be required. The FEMA floodplain in this area is a little different because it is a sump condition behind the Trinity River levy. The development would have to mitigate lost floodplain storage volume 1 for 1. Additionally, the finished floors and plumbing/electrical/mechanical items would need to be elevated two feet above the base flood elevation. Engineering documentation would have to be provided with the floodplain permit showing that the development complies with all of the floodplain criteria. Note that this is different from detention for mitigation increased runoff. If the development affects less than one acre, then there would not be a drainage study required and no requirement to mitigate increased runoff (e.g. detention). In this case, because the development affects more than one acre, they would need to perform a drainage study showing they have mitigated adverse impacts caused by the increased runoff. The Linwood area is well known for having stormwater and flooding issues. The storm drain capacity is very limited in this area and therefore the development would need to maintain existing peak discharges from their site. This might mean using onsite detention, pervious pavement, or other means of mitigating increased runoff. The developer held a pre -application meeting with Development Services staff and confirmed that the development's civil engineering plans would need to accommodate stormwater detention and floodplain requirements. Civil engineering plans would be reviewed as part of the building permit process. According to the developer, they have discussed opportunities to upsize stormwater infrastructure to benefit the neighborhood with Development Services staff. Why would the City consider a loan for this project? NSD staff believes the subject site is ideal for affordable housing as it is considered an "opportunity area" by TDHCA with high -performing schools, nearby jobs, and adjacency to a transit line. The location of the proposed affordable housing development is one of the reasons that the project scored so highly in TDCHA's competitive process. Additionally, the developer, Saigebrook Development, has successfully built quality, affordable housing in the City in recent years. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10471 P ATEk 0, To the Mayor and Members of the City Council August 25, 2020 Page 7 of 7 a * r VA SUBJECT: REZONING REQUEST ZC-20-090 AND REQUESTED FINANCING 1@7'3 FOR PROPOSED AFFORDABLE HOUSING DEVELOPMENT KNOWN AS AZALEA WEST APARTMENTS Has this developer met with the neiahborhood association? According to representatives of Azalea West Apartments, LLC, a significant amount of public engagement with the neighborhood residents has occurred. Documents submitted by the developer indicate there have been five public information sessions that have included/invited the Linwood Neighborhood Association; one meeting with the Linwood Neighborhood Association; two meetings with residents of nearby residential developments; a meeting between the Neighborhood Association Leaders, the developer, and City staff (June 8, 2020); a meeting with leaders within the Linwood Neighborhood Association; and numerous phone calls and emails with representatives of the Linwood Neighborhood Association. A list of neighborhood meetings concerning the Azalea West Apartments submitted by the developer is attached. For more information the following staff is available to answer questions: Zoning Questions: Arty Wheaton -Rodriquez ext. 6226 or Randy Hutcheson ext. 8008 Housing Questions: Amy Connolly ext. 7556 or Victor Turner ext. 8187 Legal Questions: Melinda Ramos ext. 7631 or Jo Ann Pate ext. 6259 David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS FORT WORTH. Map 1 ZC-20-090 Future Land Use N A Comprehensive Plan shal not constitute zoning regu Iatio" or 130 65 0 130 Feet estab I is hzoning district bow dad es. (Texas Local Govemment Code, Section 213.005.) Land use designationswers approved by City Council on March 6, 2018. Created: 7/21/2020 4:18:21 PM FORT WORTH. Area Zoning Map Applicant: Panther City Holding Address: 2712-2724 (evens) Azalea Avenue Zoning From: A-5 Zoning To: UR Acres: 0.79337273 Mapsco: 62X Sector/District: Arlington Heights Commission Date: 8/12/2020 Contact: 817-392-6226 Map 2 ZC-20-090 UR 203 pg?' 2B17 2a09 2801 2]1331 2721 2W 200 200 2609 M1 212 ro 1Y1 2621 2625 2 M 213213 n 1212 2628 261122 $ w .. U R U M -1 1`1 :J U -1 asp w 263 267 FH C r54 I 301 362 362 8go g PD9 �a 401 9pq - Subject Area ® 300 Foot Notification 2741 27T1 2729 272Af MU-Z spa PPMbENBERGER �3 251251 2625 2617 301 }} 1 PDDD574 501 501 501 501 501 501 501 501 501 501 501 501 501 501 501 625 52fi I sm 0 105 210 420 Feet Created: 7/21/2020 4:18:23 PM AZALEA WEST CONCEPT AT 82% OF ALLOWABLE DENSITY STORY)F-z �X THE MODERNE UR MODERNE PARKING MODERNE PARKING a MULTIFAMILY BLDG 1PARKING BELOW) ELEVATED COURTYARD MULTIFAMILY w BLDG v (PARKING BELOW) VERSION 5 8/20/20 all M\ MULTIFAMILY BLDG l" fi List of Neighborhood Engagement — Submitted via email by Megan Lasch, President, O-SDA Industries, LLC on 08/20/20 December 10, 2019: Meeting with Linwood Neighborhood Association leaders A small, informal meeting was held with the presidents of relevant neighborhood associations and neighborhood stakeholders at Craftwork Coffee on December 10, 2019. Attendees at this meeting were Eva Sandoval Bonilla and David Dodson, representing the Linwood Neighborhood Association; and Margaret DeMoss and Melissa Dunn, representing the West 7th St. Neighborhood Alliance. The purpose of the meeting was to hear what neighborhood stakeholders would be interested in seeing in a development on the proposed site. January 7, 2020: Public Information Session A public information session was held from 3:30-4:30pm on January 7, 2020 at Central Christian Church to share information about the developer's work in Texas and the housing tax credit system. The development team presented an initial site plan for comment and discussion. Attendees at this meeting were Linwood residents. January 13, 2020: Public Information Session A public information session was help from 5:30 — 6:30pm on January 13, 2020 at Central Christian Church to share an updated site plan based on the neighbors' feedback at the previous neighborhood meeting. Attendees at this meeting were Linwood residents. January 13, 2020: Linwood Neighborhood Association Meeting The development team was invited to present at a Linwood Neighborhood Association meeting from 7:00 — 8:OOpm at Natural Grocers. The development team shared information on their work in Texas and the housing tax credit system and presented the updated site plan to the neighborhood association for comments and feedback. Attendees at this meeting were Linwood residents. Comments from the neighborhood on the updated site plan included the following: • Neighbors are concerned about the effects of the development on surrounding property values and resale prices of homes. • Neighbors are concerned about Section 8 Voucher -holders' potential tenancy. • Neighbors are concerned about street parking and traffic on neighborhood streets. January 20, 2020: Public Information Session and Tour of Mistletoe Station Apartments A public information session and tour of Saigebrook Development/0-SDA Industries' almost -completed Mistletoe Station Apartments took place on January 20, 2020 from 5:00-6:OOpm at Mistletoe Station, 1916 Mistletoe Blvd. Melissa Dunn and Margaret DeMoss of the West 7th Neighborhood Alliance, as well as one neighbor from the Linwood Neighborhood Association attended and toured the property. January 23, 2020: Linwood Neighborhood Association Special Meeting A private Linwood Neighborhood Association meeting took place at 6:30pm at 263 Foch Street. We requested to be in attendance in order to answer questions and were not allowed. The purpose of this meeting was to vote to determine whether the neighborhood would support each of two proposed developments, including Azalea West. An alternative development located on Jacksboro Hwy. was unanimously supported because "they are providing enough parking and their traffic will not affect our neighborhood." Azalea West was not supported by a majority "because of the increased traffic congestion, parking challenges, and the possibility of increased crime as reported by our Neighborhood Police Officer." February 12, 2020: Foundry Tenant Information Session A meeting for Foundry Commercial Tenants and local business owners took place at 6:OOpm at Tulane's Bar, at 2708 Weisenberger Street. Commercial tenants were contacted in the week preceding the List of Neighborhood Engagement — Submitted via email by Megan Lasch, President, O-SDA Industries, LLC on 08/20/20 meeting to inform them that an information session would take place at the above time. The purpose of this meeting was to share the potential community benefits with business owners, including creating housing that is potentially accessible for employees in The Foundry, and bringing new people into the neighborhood to patronize commercial enterprises in the area. The meeting was hosted and attended by Daniel Zapato and Amanda Jones, owners of Tulane's. March 13, 2020: Meeting with Linwood Neighborhood Association Leaders Meeting with Eva Bonilla and David Dodson to discuss how we move forward and revised site plan was shared. May 6, 2020: Public Design Discussion A public design discussion on an updated site plan and elevations based on neighborhood concerns and feedback took place at 5:30pm over Zoom. The purpose of this meeting was to receive site plan and design feedback from the neighborhood. Attendees included Linwood residents, as well as the Linwood Neighborhood Association leadership. May 21, 2020: Public Design Discussion A public design discussion on an updated site plan and elevations based on neighborhood feedback from the previous (May 6) public design discussion took place at 1pm over Zoom. The purpose of this meeting was to receive site plan and design feedback from the neighborhood. This meeting was attended by Linwood residents as well as Arty Wheaton -Rodriguez, who helped to answer zoning questions for the neighborhood. June 8, 2020: Meeting with Neighborhood Leaders and City Staff Fernando Costa, Dana Burgdorf from City staff attended, and a lengthy discussion occurred about the site plan. Revisions were made as a result of the meeting and the revised site plan was taken to council. June 15th, 2020: Meeting with SO7 Neighborhood Association An open information session with the SO7 Neighborhood Association took place on July 14. The purpose of this meeting was to answer questions and correct misinformation based on a petition circulated by the SO7 Neighborhood Association. Attendees included members of the SO7 Neighborhood Association. June 10th, 2020: UR notification Saigebrook team member reached out to David Dodson to let them know we will provide UR zoning as requested with a new case that would be heard August 12tn August 4, 2020: Darin Norman reaches out to Linwood Neighborhood Association leaders On August 4, Darin Norman reached out to Linwood Neighborhood Association leaders via email to open a conversation for further discussion on the proposed rezone to UR. Darin did not hear back from the neighborhood. In addition to the formal meetings listed above, Saigebrook Development has had numerous conversations, phone calls, and emails with the Linwood Neighborhood Association, SO7 Neighborhood Association, Foundry tenants, and members of the Cultural District Alliance since December of 2019. A resident of Montgomery Plaza on behalf made the request that Azalea West be added to the Neighborhood Association's agenda for discussion, but this request was ignored. 2