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Z24-02 PB Staff ReportZ24-02 Staff Report PB 02.01.2024 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 PB 02.01.2024 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 PB 02.01.2024 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 totaling 1.09 acres, which is the maximum density permitted under a performance development in R-10. • Each dwelling unit is proposed on an individual lot. • The applicant intends for the units to be affordable to moderate income earners making between 60% - 120% of the Area Median Income (AMI). • 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. • 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 agreed to by the applicant. 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 low densities. Since that time, public water and sewer services have become available to the surrounding area. Single Family Lots Open Space Proposed Stormwater Single Family Lots Open Space 45’ Private Access Easement Commented [RR1]: Mention here that the applicant intends for the residential units to be affordable to moderate income earners making between 60-120% of the Area Median Income (AMI). Have in your back pocket what those incomes are. Commented [RF2]: Provide access to an adjacent residential parcel? Commented [RR3R2]: How does the access easement provide access? It looks like it dead ends into the property to the south? Commented [AD4R2]: Their site plan only reflects the easement located on their property. The easement goes across the back of those other properties also to Cottonwood Lane. Commented [RR5]: Add a bullet toward the end noting that while the applicant intends the residential units to be workforce housing there are challenges in enforcing a condition tied for for- sale units. A condition requiring the units be affordable to the workforce if the development is a rental project has been agreed to by the applicant. Z24-02 Staff Report PB 02.01.2024 Page 4 of 15 • 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 was 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 allowed. Commented [RR6]: Comma after area at the conclusion of the introductory clause Commented [RR7]: Comm after “time” at the conclusion of the introductory clause Commented [RF8]: 1.9 du / ac would be 5 dwelling units? Commented [RF9]: Shorten this up a bit by just comparing the percentages. But keep that acreage difference in mind in case it is asked at a board meeting. Z24-02 Staff Report PB 02.01.2024 Page 5 of 15 AREA DEVELOPMENTS Commented [RF10]: Have Katherine remove I-6037, I-5760A, and R-2633D. Those are maintenance projects, not improvements to the road. Commented [AD11R10]: Waiting on a new map Z24-02 Staff Report PB 02.01.2024 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 Type of Roadway Local Road Local Road Commented [RF12]: Double check that acreage x 1.9 Commented [RF13]: May not have noticed this before, but it is full access onto Rockhill Road. Z24-02 Staff Report PB 02.01.2024 Page 7 of 15 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, 11th 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. Commented [RF14]: Did Jamar say this about Ervins Place? I would have thought since it wasn’t a state road they wouldn’t even have this for it. Commented [RF15]: We need to say something like While the increase in estimated trip generation is minimal, 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. Depending on any information we get from NCDOT about any deficiencies with the road that may need to be included here as well. Z24-02 Staff Report PB 02.01.2024 Page 8 of 15 ENVIRONMENTAL • The property is not within a Natural Heritage Area 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) Commented [RF16]: Double check those school numbers too. Commented [RR17]: See comments below. Commented [AD18R17]: Unsure if I addressed your comment. I checked Legacy Landing and added updated language from Robert’s report. Commented [RR19]: You can remove this language since this occurred at the joint meeting last week. Commented [RR20]: Re-do—the numbers you used in the footnote below are not the 2023-2024 numbers. Commented [RR21R20]: I have gone in and adjusted the numbers (shown in red text)—remember we round and use whole numbers. Z24-02 Staff Report PB 02.01.2024 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** (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 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 result 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 Commented [RR22]: These do not reflect the 2023-2024 school year numbers. Commented [RR23R22]: These numbers also should be rounded. I’ve corrected and show in red text. Commented [RR24]: See Z24-01 Legacy Landing for updated language here as well. Commented [RR25]: “Those upgrade projects have not been finalized by the New Hanover County School Board.” Z24-02 Staff Report PB 02.01.2024 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 developed 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. Commented [RF26]: Since they are providing the affordability condition, we need to include the paragraph in Legacy Landing Phase 2 about the Housing Needs Assessment. Commented [AD27R26]: Where do I find the info in the last sentence? Commented [RF28]: Let me know if this needs to be changed Commented [RR29R28]: Our definition of workforce housing is 60-120% AMI. The HNA gaps for that range are 5,361 rental units and 5,962 for sale units. Please double check my math. Z24-02 Staff Report PB 02.01.2024 Page 11 of 15 Representative Developments Representative Developments of Single Family Residential: Legacy Landing Phase 1 Subdivision Apple Valley Subdivision Z24-02 Staff Report PB 02.01.2024 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 intended 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. Commented [RR30]: “proposed maximum density” Z24-02 Staff Report PB 02.01.2024 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. 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 plan recommends single-family residential development at a density of no more than 3.3 dwelling units per acre. 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. Commented [RF31]: We’ll need to mention Ervin’s Place is not state maintained and while a minimal increase, the additional estimated trips may further impact the roadway. There is also some discussion of affordability in Love’s Covenant II analysis that would be appropriate here. Commented [RR32R31]: Unless there’s a specific Comp Plan policy related to the Ervin’s Place roadway status, I’m not sure if that should be included as part of the Comprehensive Plan analysis. We would at least need to address that there is not Comp Plan policy related to that. Z24-02 Staff Report PB 02.01.2024 Page 14 of 15 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. Units under common ownership used as rentals shall include a minimum of 100% of the units 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. • 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 Commented [RR33]: I might also suggest a condition that the maximum density of the project be 3.2 units/acre and only Dwelling, Single Family Detached be allowed. We have discussed making this explicit in conditions during recent conversations with Legal staff. Commented [RR34]: Has this been run by Robert & Karen? I want to make sure it can’t be interpreted differently from what we intend. Commented [RR35]: I spoke with Robert about a revision to this condition to specify 80% AMI instead of HUD High Home rent (which generally translates to 60% AMI, which would mean the project doesn’t really qualify as “workforce”) or funded through the low housing tax credit program (which has similar requirements but means we wouldn’t have to monitor for compliance). Commented [RR36R35]: The comment above was specifically related to Love’s Covenant II project—LIHTC is not a possibility for this type of SF detached, and these conditions are specific for rental products. Are these guaranteed rentals? What are going to methods to keep them affordable if they are for-sale? We may want to talk through at today’s Legal meeting. Z24-02 Staff Report PB 02.01.2024 Page 15 of 15 • 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.