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Staff Report - Planning BoardZ23-25 Staff Report PB 1.4.2024 Page 1 of 17 STAFF REPORT FOR Z23-25 CONDITIONAL REZONING APPLICATION APPLICATION SUMMARY Case Number: Z23-25 Request: Rezoning to a Conditional RMF-M district Applicant: Property Owner(s): Cindee Wolf with Design Solutions New Beginning Christian Church, Inc. Location: Acreage: 3100 Block Blue Clay Road 10.94 PID(s): Comp Plan Place Type: R03300-003-002-000 Community Mixed Use Existing Land Use: Proposed Land Use: Undeveloped Maximum180 Multi-Family Dwelling Units Current Zoning: Proposed Zoning: CZD R-5, Conditional Zoning District Residential Moderate High Density and R-20 Residential (CZD) RMF-M, Conditional Residential Multi- Family Moderate Density SURROUNDING AREA LAND USE ZONING North Single-Family Residential (Ivy Wood Subdivision) R-10 East North Kerr Industrial Park I-2 South Single-Family Residential (Rachel’s Place Subdivision) (CZD) R-10 West New Beginning Christian Church and Covenant I Residential Development R-20, R-10 Z23-25 Staff Report PB 1.4.2024 Page 2 of 17 ZONING HISTORY July 1, 1974 Initially rezoned R-20 (Area 10A) April 4, 2016 Portion of parcel rezoned to (CZD) R-10 as part of a larger rezoning to allow for the development of a performance residential subdivision May 2, 2022 Rezoned (CZD) R-5 for the development of 17 quadraplex buildings for a total of 68 units COMMUNITY SERVICES Water/Sewer CFPUA public water and sewer available through a mainline extension. Fire Protection New Hanover County Fire Services, New Hanover County Northern Fire District, New Hanover County Wrightsboro Station Schools Wrightsboro Elementary, Holly Shelter Middle, and New Hanover High Schools Recreation Cape Fear Optimist Park, Blue Clay Bike Park CONSERVATION, HISTORIC, & ARCHAEOLOGICAL RESOURCES Conservation No known conservation resources Historic No known historic resources Archaeological No known archaeological resources Z23-25 Staff Report PB 1.4.2024 Page 3 of 17 APPLICANT’S PROPOSED CONCEPTUAL PLAN Applicant’s Concept Plan - Includes Staff Markups • The applicant is proposing to rezone a 10.94-acre parcel to (CZD) RMF-M to construct a 180-unit attached housing development at a density of 16.4 units per acre. The proposed plan also includes associated parking, a clubhouse, and common amenities. • The proposed development consists of 15 multi-family buildings on the parcel, which is bounded to the east by Blue Clay Road between the Ivy Wood neighborhood to the north and the Rachel’s Place neighborhood to the south. The building heights are proposed at a maximum of three stories. • The applicant has submitted architectural designs of the proposed multi-family dwelling us as part of the conceptual plan. • The community clubhouse is located on the eastern portion of the parcel, close to the southern boundary of the parcel along the proposed private drive New Beginning Drive. • The existing stormwater infiltration basin located on the western portion of the site will be expanded to accommodate for the proposed development. • A 30’ wide drainage easement is indicated along the northern boundary of the project adjacent to property zoned or developed as R-10, Residential District. Z23-25 Staff Report PB 1.4.2024 Page 4 of 17 ZONING CONSIDERATIONS • The R-20 district in this area was established in 1974. At the time, the purpose of the R-20 district was to ensure that housing served by private septic and wells would be devel oped at low densities. Since that time, water and sewer services have become available to the surrounding area, however, the Blue Clay Road corridor remains primarily zoned for low density housing and industrial uses. • Rezoning case Z-950 was approved in 2016 and resulted in the subject site being split zoned (CZD) R-10 and R-20. Case Z-950 was a rezoning request to construct a 46-unit performance residential district. The current subject site was intended at the time to contain 16 of these lots, as well as recreation space and 30 lots were to be located on another portion of the parent tract. • Rezoning case Z-966 approved Covenant I, a 68-unit Senior Housing residential development. Covenant I is located on the site where the original 30 lots for Z-950 were to be constructed. The subject site for Covenant II still contains the (CZD) RMF-M zoning tied to case Z-950. • Approved May 2, 2022, case Z22-08 rezoned approximately 9.6 acres of a 10.94-acre site from R-20 and (CZD) R-10 to (CZD) R-5 for a 68-unit attached housing development. • The purpose of the RMF-M, Residential Multi-Family Moderate Density District is to provide lands that accommodate moderate density single-family and multi-family development. • The proposed 180-unit development equates to a density of 16.4 units per acre. The RMF- M district allows up to 17 units per acre by-right. • In the description of the project, the development is intended to provide affordable units within the 60-120% Are Median Income (AMI). • The proposed development as well as the existing development do not connect in with the stub at Galway Road, a publicly dedicated road. Staff has been recently informed by representatives from NCDOT that if a connection is not made, Galway Road will never be eligible for addition to the state maintenance system. This information was not provided at the time of the previous rezoning request. • If approved, the project would be subject to Technical Review Committee and zoning compliance review processes to ensure full compliance with all ordinance requirements and specific conditions included in the approval. Only minor deviations from the approved conceptual plan, as defined by the UDO, would be allowed. Z23-25 Staff Report PB 1.4.2024 Page 5 of 17 Z22-08 Original Concept Plan - Includes Staff Markups Z23-25 Staff Report PB 1.4.2024 Page 6 of 17 AREA DEVELOPMENTS Z23-25 Staff Report PB 1.4.2024 Page 7 of 17 TRANSPORTATION CURRENT CONDITIONS Intensity of Current Zoning Typical development under current zoning would allow a maximum of 17 single-family dwelling units. PROPOSED ACCESS Primary Access 3100 Block Blue Clay Rd. Secondary Access N/A EXISTING ROADWAY CHARACTERISTICS Affected Roadway Blue Clay Rd. Z23-25 Staff Report PB 1.4.2024 Page 8 of 17 Type of Roadway Minor arterial Roadway Planning Capacity (AADT) 10,979 Latest Traffic Volume (AADT) 6,900 (2022) Latest WMPO Point-in-Time County (DT) 6,001 (7/2022) Current Level of Congestion Has capacity NEARBY NCDOT STIP ROADAWAY PROJECTS U-5853 – NC 133 Widening (Unfunded at this time, est. 2025) I-140/US 17 (Wilmington Bypass) to SR 1310 (Division Drive) in Wilmington. Widen to multi-lanes. Currently unfunded. U-5954 – NC 133 Roundabout Construction of a roundabout at the intersection of NC 133 (Castle Hayne Rd.) and SR 1302 (23rd St.) Right of Way Year: 2025 Construction Year: 2017 TRAFFIC GENERATION Traffic Generated by Present Designation Traffic Generated by Proposed Designation Potential Impact of Proposed Designation AM Peak Hour Trips 52 90 +38 PM Peak Hour Trips 69 83 +14 TRAFFIC IMPACT ANALYSIS (TIA) The estimated traffic generated from the site is under the 100 peak hour threshold that triggers the ordinance requirement for a Traffic Impact Analysis (TIA). Z23-25 Staff Report PB 1.4.2024 Page 9 of 17 SUMMARY The proposed project is located along a minor arterial roadway that currently has capacity. Several other projects are currently under review or development in the vicinity; and while their traffic impact analyses did not take this proposal into account, all were developed to take into account general traffic growth in the area. During the initial Covenant II rezoning, concerns were raised about the lack of public transportation in the area given the affordable housing aspect of the project. Since then the county has initiated a micro-transit program, with WAVE offering point-to-point transit opportunities throughout the county. The proposed project’s peak hour traffic is below the 100 peak hour threshold requiring a traffic impact analysis, but NCDOT will review the project through the driveway permitting process. ENVIRONMENTAL • The property does not contain any Special Flood Hazard Areas or Natural Heritage Areas. • The property is within the Ness Creek watershed. • Per the Classification of Soils in New Hanover County for Septic Tank Suitability, soils on the property consist of Class II (moderate limitations for septic suitability) and Class III (severe limitations for septic suitability). However, the site is expected to be served by CFPUA when developed. OTHER CONSIDERATIONS Schools • Students living in the proposed development would be assigned to Wrightsboro Elementary School, Holly Shelter Middle School, and New Hanover High School. Students may apply to attend public magnet, year-round elementary, or specialty high schools. • A maximum of 68 dwelling units would be permitted under the current (CZD) R-5 zoning base density, and 180 units could potentially be developed under the proposed zoning for an increase of 112 dwelling units. • Based on a generalized historic generation rate*, staff would estimate that the increase in homes would result in approximately 24 additional students than would be generated under current zoning. • The general student generation rate provides only an estimate of anticipated student yield as different forms of housing at different price points yield different numbers of students. • Over the past four years, staff has also seen a decline in the number of students generated by new development. Between the 2020-2021 school year and the 2023-2024 school year, total student population decreased by approximately 300 students, while over 11,000 new residential units were constructed. • The county uses the most current New Hanover County Schools Facilities Needs Study in its analysis, and it currently shows the student population is anticipated to only grow by approximately 1,300 students over the next 10 years. However, a more recent New Hanover County School Facility Utilization Study presented to the School Board in Z23-25 Staff Report PB 1.4.2024 Page 10 of 17 September 2023 indicates only approximately 400 more students by the 2032-2033 school year, though numbers are anticipated to be higher during certain school years over the next ten years. This updated study has not been fully reviewed by Planning staff or presented to the Board of Commissioners. That is expected to occur in early 2024. Development Type Intensity Estimated Student Yield (current general student generation rate) * Existing Development Undeveloped Approximate** Total: 0 (0 elementary, 0 middle, 0 high) Typical Development Under Current Zoning (CZD R-5) 68 residential units Approximate** Total: 14 (7 elementary, 3 middle, 5 high) Proposed Zoning (CZD) RMF- M 180 residential units Approximate** Total: 38 (18 elementary, 7 middle, 13 high) *The current general student generation rate was calculated by dividing the New Hanover County public school student enrollment for the 2023-2024 school year by the number of dwelling units in the county. Currently, there are an average of 0.21 public school students (0.10 for elementary, 0.04 for middle, and 0.07 for high) generated per dwelling unit across New Hanover County. These numbers are updated annually and include students attending out - of-district specialty schools, such as year-round elementary schools, Isaac Bear, and SeaTech. **Because the student generation rate often results in fractional numbers, all approximate student generation yields with a fraction of 0.5 or higher are rounded up to a whole number and yields with a fraction of less than 0.5 are rounded down. This may result in student numbers at the elementary, middle, and high school levels not equaling the approximate total. • Staff has provided information on existing school capacity to provide a general idea of the potential impact on public schools, but these numbers do not reflect any future capacity upgrades. School Enrollment* and Capacity** (2023-2024 School Year) *Enrollment is based on the New Hanover County Schools student numbers for the 2023-2024 school year. **Capacity calculations were determined based on the capacities for the 2023-2024 school year, and funded or planned capacity upgrades were those included in the Facility Needs Study presented by New Hanover County Schools to the Board of Education in January 2021. This information does not take into account flexible scheduling that may be available in high school settings, which can reduce the portion of the student body on campus at any one time. • The 2021 facility needs survey prepared by Schools staff indicates that, based on NC Department of Public Instruction (DPI) student growth projections and school capacity data, planned facility upgrades, combined with changes to student enrollment patterns, will result in adequate capacity district wide over the next ten years if facility upgrades are funded. Level Total NHC Capacity School Enrollment of Assigned School Capacity of Assigned School w/Portables Capacity of Assigned School Funded or Planned Capacity Upgrades Elementary 90% Wrightsboro 484 595 81% None Middle 88% Holly Shelter 818 991 83% None High 100% New Hanover 1531 1678 91.2% None Z23-25 Staff Report PB 1.4.2024 Page 11 of 17 • The more recent New Hanover County Schools School Facility Utilization Study has been prepared and was presented to the School Board in September 2023, and it identifies updated capacity upgrade projects that will be presented to the Board of Commissioners at the planned work session in early 2024. New Hanover County Strategic Plan On July 17, 2023 the Board of Commissioners adopted a new strategic plan for Fiscal Years 2024- 2028. This plan focuses on three core areas: workforce and economic development, community safety and well-being, and sustainable land use and environmental stewardship. Strategic Plan Outcomes Relevant to Proposal Analysis Through planned growth and development, residents have access to their basic needs. The strategic objective to achieve this desired outcome includes the provision of a variety of housing options. The proposed CZD RMF-M rezoning will provide new attached single- family homes in an area of the county that is largely single-family, detached and can aid in achieving the target of increasing the housing supply to a level of one residential unit per every two residents. The 2022 Housing Needs Assessment, also known as the Bowen Report, concluded there is an estimated overall housing gap of 12,147 rental units and a gap of 16,875 for-sale units within the county over the next 10 years. The project is proposed as affordable workforce housing which typically provides housing opportunities within the range of 60-120% AMI. The Housing Needs Assessment estimates an overall housing gap of 5,361 rental units and 5,962 for sale units within the range of 60- 120% AMI. Natural areas and critical environmental features are enhanced and protected. No critical environmental features have been identified on the property and the project requires a minimum 20% open space for performance residential developments. Z23-25 Staff Report PB 1.4.2024 Page 12 of 17 Representative Developments Representative Developments of R-5: Wrightsville Place Leeward Village Z23-25 Staff Report PB 1.4.2024 Page 13 of 17 Representative Developments of RMF-M: The Parks at Three Oaks Stephens Pointe Z23-25 Staff Report PB 1.4.2024 Page 14 of 17 Context and Compatibility • The subject property is located on a minor arterial road and abuts the Wrightsboro commercial node. • The property is adjacent to residentially zoned property to the north and south, the New Beginning Christian Church to the west, and the N. Kerr Industrial Park is located across Blue Clay Road to the east. • The proposal is at a density higher than that of the adjacent residential land uses. The adjacent developments, zoned R-10 have a density of 3.3 dwelling units an acre. • The proposed height will be limited to 3 stories, which is the maximum allowed height within the RMF-M district. 2016 COMPREHENSIVE PLAN The New Hanover County Future Land Use Map provides a general representation of the vision for New Hanover County’s future land use, as designated by place types describing the character and function of the different types of development that make up the community. These place types are intended to identify general areas for particular development patterns and should not be interpreted as being parcel specific. Future Land Use Map Place Type Community Mixed Use Place Type Description Focuses on small-scale, compact, mixed use development patterns that serve all modes of travel and act as an attractor for county residents and visitors. Types of appropriate uses include office, retail, mixed use, recreational, commercial, institutional, and multi-family and single-family residential. Z23-25 Staff Report PB 1.4.2024 Page 15 of 17 Analysis The subject property is located in the northern portion of the county along a minor arterial road and is in the general vicinity of the Wrightsboro neighborhood commercial node and other commercial services. The development pattern in the area has changed over the past several years, with several residential development projects and approvals, including Rachel’s Place, the Covenant I, Blue Clay Townes, and the Trask RMF-L project to the north, all of which have densities between 3-10 units per acre. The Comprehensive Plan classifies the property as Community Mixed Use, which promotes development of a mix of residential, office, and retail uses at moderate densities while also providing a transition between the existing lower density housing and higher intensity employment centers, such as the N. Kerr Industrial Park. As the site is located between two existing single-family developments on the north and south, abuts an existing religious institution to the west, and is across Blue Clay Road from industrially-zoned properties to the east. These areas are classified as General Residential and Employment Center within the Future Land Use Map. As such, residential densities higher than those seen for adjacent properties could be appropriate for the site and could serve as appropriate infill and transitional development between those two land use classifications. In addition, one of the primary goals of the 2016 Comprehensive Plan is to provide for a range of housing types, opportunities, and choices so that citizens are not overburdened with the costs or availability of housing but have a diverse range of options that are affordable at different income levels. The affordability range that could be provided by this project would help to address one of the largest affordability gaps identified in the updated Housing Needs Assessment presented to the Commissioners in Spring 2023. However, the density of 16.4 units/acre proposed for this project exceeds the 12-15 multi-family units/acre recommended for the Community Mixed Use place type. Staff has considered including more flexibility in densities for affordable projects as part of the residential density amendment anticipated to be part of the first tranche of Comprehensive Plan update amendments. However, that change in policy has not been vetted or thoroughly analyzed at this point. Consistency Recommendation While the proposed project could serve as a transition between lower intensity and higher intensity development in the area and provide needed affordable housing stock, the density proposed exceeds what is recommended for the Community Mixed Use Plan Type, so it is generally INCONSISTENT with the 2016 Comprehensive Plan. Z23-25 Staff Report PB 1.4.2024 Page 16 of 17 STAFF RECOMMENDATION Staff’s recommendation is based on the policy guidance of the 2016 Comprehensive Plan, zoning considerations, and technical review. While the project would increase the supply of dedicated affordable housing in the area—the existing CZD R-5 zoning district did not include a specific condition for affordability though that was the property owner’s intent—the proposed density is above what is recommended in the Comprehensive Plan. Efforts have begun to consider whether more flexibility in density is appropriate for affordable developments, but that has not been vetted or thoroughly analyzed at this point. As a result, Staff recommends disapproval of the proposal and suggests the following motion: While the proposed project could serve as a transition between lower intensity and higher intensity development in the area and provide needed affordable housing stock, I move to recommend DENIAL of the proposed rezoning. I find it to be INCONSISTENT with the purposes and intent of the Comprehensive Plan because the proposed density of the development exceeds the density recommended for the Community Mixed Use place type. I also find recommending DENIAL of the rezoning request is reasonable and in the public interest because the project is more intensive than neighboring properties and not consistent with the development pattern in the area. Alternative Motion for APPROVAL (if based on information presented at the public hearing or other consideration beyond the scope of staff review, the board finds approval appropriate.) I move to recommend APPROVAL of the proposed rezoning. While I find it to be INCONSISTENT with the purposes and intent of the Comprehensive Plan because the proposed density of the development exceeds the density recommended for the Community Mixed Use place type, I find recommending APPROVAL of the rezoning request is reasonable and in the public interest because the proposed project provides a variety of housing options and additional affordable housing units in the county. Existing conditions to remain in effect: 1. Street trees shall be provided along the boundary with the Rachel’s Place Subdivision. 2. The connection to Rachel’s Place shall be gated and limited to emergency vehicle access. 3. A fenced buffer shall be provided along the northern property line and fencing shall be incorporated along the southern property line. 4. Existing trees along the drainage ditch to the north shall be retained outside of clearing necessary for stormwater conveyance and maintenance. Additional proposed conditions: 1. The project will include a minimum of 100% of the units as workforce housing units that have either been approved for Low Income Tax Credit funding or an agreement between the developer and county will be required. If required, the agreement shall Z23-25 Staff Report PB 1.4.2024 Page 17 of 17 be established before the issuance of any Certificate of Occupancy for the project and specify: • Affordability will be made available for a period of no less than 15 years with rental limits based upon HUD income limits of 80% AMI. • The number of affordable units provided; • The income limits; • Rent limits subject to annual change; • The period of time workforce housing units must remain affordable; • Any other criteria necessary for compliance and monitoring; • An established timeframe for annual reporting from the developer or owner of the development to New Hanover County. Annual reports shall provide the following minimum information. o Unit number o Bedroom number o Household size o Tenant income o Rent rate • The developer or owner of the development shall report any mid-year lease changes to workforce housing units to New Hanover County to ensure lease changes remain compliant with the agreement. • If the total number of workforce housing units falls below the minimum of 100% before the expiration of the minimum 15-year period of affordability the development shall be subject to enforcement measures found in Article 12 Violations and Enforcement of the Unified Development Ordinance.