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Z24-02 BOC Staff ReportZ24-02 Staff Report BOC 03.14.2024 Page 1 of 15 STAFF REPORT FOR Z24-02 CONDITIONAL REZONING APPLICATION APPLICATION SUMMARY Case Number: Z24-02 Request: Rezoning to a Conditional R-10 district Applicant: Property Owner(s): Cindee Wolf with Design Solutions John Pennington with Sixthree Development, L.L.C. Location: Acreage: 1540 Rockhill Road 2.81 PID(s): Comp Plan Place Type: R02500-003-007-000 General Residential Existing Land Use: Proposed Land Use: Vacant and wooded lot Maximum 9 single-family dwelling units. Current Zoning: Proposed Zoning: R-20, Residential (CZD) R-10, Residential SURROUNDING AREA LAND USE ZONING North Single Family Residential R-20 East Single Family Residential R-20 and CZD R-10 (Legacy Landing Phase 1) South Single Family Residential R-20 West Single Family Residential R-20 and R-10 (Walnut Hills) Z24-02 Staff Report BOC 03.14.2024 Page 2 of 15 ZONING HISTORY July 1, 1974 Initially zoned R-20 (Area 10A) July 9, 2018 Request to rezone straight R-20, Residential to R-10, Residential denied (case Z18-06) COMMUNITY SERVICES Water/Sewer CFPUA water and sewer services are available in the area. 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 Laney High School Recreation Cape Fear Optimist Park, Northern Regional Park CONSERVATION, HISTORIC, & ARCHAEOLOGICAL RESOURCES Conservation No known conservation resources. Historic No known historic resources. Archaeological No known archaeological resources Z24-02 Staff Report BOC 03.14.2024 Page 3 of 15 APPLICANT’S PROPOSED CONCEPTUAL PLAN Applicant’s Concept Plan - Includes Staff Markups • The proposed concept plan includes 9 single-family lots, for a density of 3.2 dwelling units per acre, which is below the maximum density permitted under a performance development in R-10. • Each dwelling unit is proposed on an individual lot. • Open space totaling 1.72 acres is proposed on the north end of the development along Rockhill Road and on the southern end of the development adjacent to residential parcels to the south. • An existing private access easement is located in the southwestern corner of the property , recorded with the intention of providing access to Cottonwood Lane. • In addition, a stormwater management system is proposed in the middle of the 9 lots. • The applicant intends for the units to be affordable to moderate income earners making between 60% - 120% of the Area Median Income (AMI). • While the applicant intends the residential units to be workforce housing there are challenges in enforcing a condition tied to for-sale units. A condition requiring the units be affordable to the workforce if the development is a rental project has been a greed to by the applicant. Whether the homes are for-sale or for-rent, however, is not subject to local review authority. 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 housing served by private septic and wells would be developed at Single Family Lots Open Space Proposed Stormwater Single Family Lots Open Space 45’ Private Access Easement Z24-02 Staff Report BOC 03.14.2024 Page 4 of 15 low densities. Since that time, public water and sewer services have become available to the surrounding area. • While R-20 is the predominant zoning district in the area , the Walnut Hills Subdivision to the west was zoned R-10 and the North Oakley Circle Subdivision to the east w as zoned R- 15 as part of Area 10A in 1974. • Since that time, the surrounding area has seen gradual shifts toward slightly higher density residential development such as the Bountiful Village Subdivision to the southeast zoned CZD R-10 in 2018, the Habitat for Humanity project on Castle Hayne Road zoned R -10 in 2020, and to the east Legacy Landing Phase 1 zoned CZD R-10 in 2021. • Currently, under the performance residential standards, the subject property would be permitted a maximum of 5 dwelling units at a density of 1.9 dwelling units per acre. • The R-10 district was established to provide lands that accommodate new residential neighborhoods and encourage the conservation of existing residential lots and neighborhoods. Neighborhoods in the R -10 district are relatively low density in character and include a limited mix of single family and duplex housing types. • The proposed 9 lot single-family development equates to an overall density of 3.2 du/ac, slightly less than the 3.3 units per acre maximum density allowed in the R -10 district. • If approved the project would be developed under the Performance Residential development standards which requires a minimum 20 -foot buffer, commonly referred to as a “performance buffer,” along the project boundary. The performance buffer is a setback and does not require vegetation or fencing. • The project also proposes 48% open space, 28% more than the minimum required under the Performance Residential development standards of the UDO which requires 20% open space. • If approved, the project would be subject to the 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 a llowed. Z24-02 Staff Report BOC 03.14.2024 Page 5 of 15 AREA DEVELOPMENTS Z24-02 Staff Report BOC 03.14.2024 Page 6 of 15 TRANSPORTATION CURRENT CONDITIONS Intensity of Current Zoning Typical development under current zoning would allow a maximum of 5 dwelling units. PROPOSED ACCESS Primary Access Rockhill Road via a full access driveway. Secondary Access Ervin’s Place Drive (Dedicated for public use, but not accepted by NCDOT) EXISTING ROADWAY CHARACTERISTICS Affected Roadway Ervin’s Place Drive Rockhill Road Z24-02 Staff Report BOC 03.14.2024 Page 7 of 15 Type of Roadway Local Road Local Road Roadway Planning Capacity (AADT) N/A 4,000* Latest Traffic Volume (AADT) N/A N/A Latest WMPO Point-in -Time Count (DT) N/A N/A Current Level of Congestion N/A Available Capacity Sources Source of Planning Capacity: WMPO Source of Latest Traffic Volume: N/A Source of WMPO Point-in -Time County: N/A NEARBY NCDOT STIP ROADAWAY PROJECTS No Nearby STIP Projects TRAFFIC GENERATION Traffic Generated by Present Designation Traffic Generated by Proposed Designation Potential Impact of Proposed Designation AM Peak Hour Trips 3 6 +3 PM Peak Hour Trips 4 8 +4 Assumptions Typical Development with Existing Zoning – 5 single family detached dwellings. Proposed Development – 9 single -family dwellings Sources Source of Trip Generation: ITE Trip Generation Manual, 11 th Ed. 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). SUMMARY The NCDOT and WMPO do not have traffic data related to Ervin’s Place Drive or Rockhill Road. Ervin’s Place Drive is not currently maintained by NCDOT. Increased traffic impacts on the road would be the responsibility of the property owners along the road until the road is adopted by NCDOT. The lack of available data for Rockhill Road indicates the road does not currently experience heavy enough traffic volumes to warrant monitoring . While there is no specific data available to indicate current or anticipated impacts to roadway capacity the increase in estimated trips generated by the proposed development is minimal. In addition, the project will be subject to NCDOT engineering review through the driveway permitting process. Z24-02 Staff Report BOC 03.14.2024 Page 8 of 15 ENVIRONMENTAL • The property is not within a Natural Heritage Are a or Special Flood Hazard Area. • 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 I (suitable/ slight limitation), class II (moderate limitation), and Class III (sever limitation) soils. OTHER CONSIDERATIONS Schools • Students living in the proposed development would be assigned to Wrightsboro Elementary School, Holly Shelter Middle School and Laney High School . Students may apply to attend public magnet, year-round elementary, or specialty high schools. • A maximum of 5 dwelling units would be permitted under the current R-20 and (CZD) R-10 zoning base density, and 9 units could potentially be developed under the proposed zoning for an increase of 4 dwelling units. • Based on a generalized historic generation rate*, staff would estimate that the increase in homes would result in approximately 1 additional student 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 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. Development Type Intensity Estimated Student Yield (current general student generation rate) * Existing Development 0 single -family dwellings Approximate** Total: 0 (0 elementary, 0 middle, 0 high) Typical Development Under Current Zoning 5 residential units Approximate** Total: 1 (1 elementary, 0 middle, 0 high) Proposed Zoning 9 residential units Approximate** Total: 2 (1 elementary, 0 middle, 1 high) Z24-02 Staff Report BOC 03.14.2024 Page 9 of 15 *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** (202 3-2024 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 202 3-2024 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 r esult in adequate capacity district wide over the next ten years if facility upgrades are funded. • 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. Those upgrade projects have not been finalized by the New Hanover County School Board. Level Total NHC Capacity School Projected Enrollment of Assignment School Capacity of Assigned School w/Portables Capacity of Assigned School Funded or Planned Capacity Upgrades Elementary 90% Wrightsboro 484 595 81% None Middle 89% Holly Shelter 818 991 83% None High 99% Laney 2251 1927 117% None Z24-02 Staff Report BOC 03.14.2024 Page 10 of 15 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 R -10 rezoning would provide new 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 proposed project is being develop ed by Sixthree Development, L.L.C., who has committed to providing workforce housing within the range of 80-120 % 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 proposes 48% open space, 28% more than the minimum required for performance residential developments. Z24-02 Staff Report BOC 03.14.2024 Page 11 of 15 Representative Developments Representative Developments of Single Family Residential : Legacy Landing Phase 1 Subdivision Apple Valley Subdivision Z24-02 Staff Report BOC 03.14.2024 Page 12 of 15 Context and Compatibility • The property is centrally located along Rockhill Road approximately midway between Castle Hayne Road and higher density residential west of the I -140 corridor. The site is also north of the Wrightsboro community and south of the GE employment center. • Existing comparably zoned neighborhoods have been in existence since the adoption of initial zoning for the area which includes a mix of small and large single-family dwellings. • Since the extension and availability of public water and sewer, developments within the recommendations of the General Residential place type have been approved in the area . These developments, while considered lower density, are slightly higher than existing surrounding development. • Additional future residential growth within the General Residential place type recommendations is anticipated in this area. • The proposed maximum density of 3.2 du/ac is below the 3.3 du/ac maximum allowed for the R-10 zoning district and less than the maximum recommended for the General Residential place type. • While the applicant has stated the proposed units are inten ded for workforce housing, because the lots can be individually sold the proposed condition only applies to lots under common ownership. There is not currently a means to guarantee short or long -term affordability for a project if parcels are under separate individual ownership. 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. Z24-02 Staff Report BOC 03.14.2024 Page 13 of 15 Future Land Use Map Place Type General Residential Place Type Description Focuses on lower-density housing and associated civic and commercial services. Typically, housing is single -family or duplexes. Commercial uses should be limited to strategically located office and retail spaces, while recreation and school facilities are encouraged throughout. Types of uses include single-family residential, low -density multi -family residential, light commercial, civic, and recreational. Analysis The property is centrally located along Rockhill Road approximately midway between Castle Hayne Road and higher density residential west of the I -140 corridor. The site is also north of the Wrightsboro community and south of the GE employment center. 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. The proposed density of 3.2 du/ac is below the 8 du/ac maximum recommended for the General Residential place type. The proposed housing type is also within those recommended for the place type. Additional future residential growth within the General Residential place type recommendations is anticipated in this area. Consistency Recommendation The proposed rezoning request is generally CONSISTENT with the 2016 Comprehensive Plan because the proposed density and housing type are in line with the recommendations of the General Residential place type. The dedicated open space provides additional buffers from the road and from the single-family residential to the south. PLANNING BOARD MEETING The Planning Board considered this application at the February 1, 2024 meeting. One person from the public spoke in opposition to the request at the meeting, citing concerns about the development changing the character of the neighborhood and the density of the project. The Planning Board voted (5-2) to recommend deni al of the petition. During their discussion, Planning Board members cited concerns about how the affordability component would be enforced, adding additional density to a parcel already challenging to develop given its narrow shape, and the project’s proposed layout. Planning Board members Pete Avery and Cameron Moore dissented, indicating that while there were challenges to developing the site, they were comfortabl e with the requested density. Z24-02 Staff Report BOC 03.14.2024 Page 14 of 15 The Planning Board found the application to be CONSISTENT with the purposes and intent of the Comprehensive Plan because the proposed density and housing type is within the recommendations of the General Residential place type. The Planning Board also found recommending DENIAL of the rezoning request was reasonable and in the public interest because Ervin’s Place Drive is not state maintained. STAFF RECOMMENDATION While staff would have preferred Ervin’s Place Drive be adopted by NCDOT prior to additional development, staff’s recommendation is based on the policy guidance of the 2016 Comprehensive Plan, zoning considerations, and technical review. The Wrightsboro area has been designated as General Residential within the Comprehensive Plan. The requested rezoning is for a maximum density of 3.2 units per acre, within the density recommended for this place type. The scale and density of the proposed development is below the recommendations for the place type and the housing type is consistent with surrounding residential development. As a result, Staff recommends approval of the request and suggests the following motion: I move to recommend APPROVAL of the proposed rezoning. I find it to be CONSISTENT with the purposes and intent of the Comprehensive Plan because the proposed density and housing type is within the recommendations of the General Residential place type. I also find recommending APPROVAL of the rezoning request is reasonable and in the public interest because the project provides additional housing diversity to the area. Staff Proposed Conditions: 1. The permitted density range is 0 dwelling units per acre to a maximum of 3.2 dwelling units per acre. Planning staff is authorized to administratively approve reductions in density within the permitted range. 2. The housing type in the development shall be limited to detached single -family dwellings as defined in Section 2.3 of the Unified Development Ordinance. 3. Accessory dwelling units shall be prohibited. 4. Open space above the minimum required by the Unified Development Ordinance shall be permanently retained as open space. 5. If this property is a rental development, then a minimum of 100% of the units must be maintained as workforce housing units within the range of 80% to 120% AMI. An agreement between the developer and county will be required. The agreement shall 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 the range of 80% to 120% AMI. Z24-02 Staff Report BOC 03.14.2024 Page 15 of 15 • 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. Alternative Motion for DENIAL (if based on information presented at the public hearing or other consideration beyond the scope of staff review, the board finds denial appropriate.) I move to recommend DENIAL of the proposed rezoning. While I find it to be CONSISTENT with the purposes and intent of the Comprehensive Plan because the proposed density and housing type are in line with the recommendations of the General Residential place type. I find recommending DENIAL of the rezoning request is reasonable and in the public interest because Ervin’s Place Drive is not state maintained.