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Z23-12 Planning Board Staff Report - July 6Z23-12 Staff Report PB 7.6.2023 Page 1 of 20 STAFF REPORT FOR Z23-12 CONDITIONAL REZONING APPLICATION APPLICATION SUMMARY Case Number: Z23-12 Request: Rezoning to a Conditional RMF-L, Residential Multi-family Low Density District Applicant: Property Owner(s): William Block, Olympus Holding Company Castle Hayne LLC Blue Tank LLC and Holly Tank LLC Location: Acreage: 5210 Holly Shelter Road and 5735 Blue Clay Road 72.39 PID(s): Comp Plan Place Type: R01100-008-011-002 & R01100-008-010- 000 General Residential Existing Land Use: Proposed Land Use: Vacant Land 521 residential units comprised of multi- family, single-family attached and detached units Current Zoning: Proposed Zoning: I-1, Light Industrial District and R-15, Residential District (CZD) RMF-L, Conditional Residential Multi- Family Low Density District SURROUNDING AREA LAND USE ZONING North Heavy Industrial and undeveloped land I-2 East Heavy Industrial, Single-Family Residential I-2, R-15 South Single-Family Residential R-15 West FAA Navigational Tower I-1 Z23-12 Staff Report PB 7.6.2023 Page 2 of 20 ZONING HISTORY July 7, 1972 Initially zoned I-1 and R-15 (Area 8A) August 7, 2000 Portions of both parcels rezoned from R-15 to I-1 in Z-708 COMMUNITY SERVICES Water/Sewer Water is available through CFPUA. CFPUA would require an on-site sewer pump station with a force main. CFPUA and New Hanover County are partnering on a proposed force main extension capital project along Holly Shelter Road from I-40 eastward to the future Holly Shelter business park. Fire Protection New Hanover County Fire Services, New Hanover County Northern Fire District, New Hanover County Castle Hayne Station Schools Castle Hayne Elementary, Holly Shelter Middle, and Laney High Schools Recreation Northern Regional Park, Riverside Park CONSERVATION, HISTORIC, & ARCHAEOLOGICAL RESOURCES Conservation No known conservation resources Historic No known historic resources Archaeological No known archaeological resources Z23-12 Staff Report PB 7.6.2023 Page 3 of 20 APPLICANT’S PROPOSED CONCEPTUAL PLAN Includes Staff Markups • The proposed concept plan is for a maximum 521 dwelling units consisting of multi-family, single-family attached and single-family detached units. It is currently anticipated that the proposal will be developed over four phases. The multi-family phase will be located at the corner of Holly Shelter and Blue Clay Road and total a maximum of 243 units, and three phases of mixed single-family attached and detached dwellings on the southern parcel totaling 278 units. • Access for the multi-family component of the development is proposed from Blue Clay and Holly Shelter while the remaining single-family units would be accessed from Blue Clay Road. There is not vehicular connectivity between the multi-family and single-family developments however a condition has been provided guaranteeing bicycle and pedestrian interconnectivity. • Both the multi-family and single-family portions of the project include stormwater, open space, and designated amenities. Ho l l y S h e l t e r R o a d Ac c e s s P o i n t St o r m w a t e r P o n d s Blue Clay Road Access Points Multi-Family Phase 1 Amenity Spaces Single-Family Attached and Detached Dwellings Phases 2, 3 & 4 Z23-12 Staff Report PB 7.6.2023 Page 4 of 20 • This item was continued from the June 1 Planning Board meeting to allow the applicant further consideration of the county’s proposed condition related to nearby existing and future industrial development. • The applicant reviewed the proposed condition in communication with Planning staff and the County Attorney’s office. The applicant has stated their preference to not include the condition as part of the application request. ZONING CONSIDERATIONS • The R-15 and I-1 zoning districts in this area were established in 1971. At the time, the purpose of the R-15 district was to ensure that housing served by private septic and wells would be developed at low densities. The I-1 zoning designation for this property reflected the industrial uses already in existence at the time this area of the county was initially zoned. • Portions of both of the parcels were rezoned from the original R-15 and I-1 zoning to the current zoning in 2000 in rezoning case Z-708. With that approval, a 75’ foot wide strip of R-15 was left to serve as a buffer between the I-1 district and the single-family residential across the Blue Clay Road right-of-way. • There has been a trend of parcels transitioning to denser residential districts in this portion of the county, including parcels rezoned to R-5, Moderate-High Density and RMF-L districts along Blue Clay Road, Dairy Farm Road, and Sidbury Road to the south. • The purpose of the RMF-L district is to accommodate lands for moderate density single family and low-density multi-family development of varying types and designs. The intent is that the RMF-L district will provide options for alternative housing types near or in direct relationship to single-family detached development with a range of housing options. • The proposal has an overall density of 7.19 dwelling units per acre. The maximum allowed density in the RMF-L district is 10 units per acre. • Performance residential developments are subject to specific setback standards. Buildings within a Performance Residential Development require a minimum setback of 20 feet from an adjoining property line. • The applicant has provided a condition restricting the maximum height of structures on the parcel to not exceed 45’ and no taller than 3 stories. Multi-family and nonresidential structures of this height within an RMF district are subject to a 30-foot required setback when abutting general residential zoned lots. • Transitional buffers also serve as a mitigation method to limit impacts on adjacent uses. Opaque buffers are required between more intense residential uses when adjacent to parcels accommodating single-family detached and/or duplex dwelling units. • For this type of development, set-aside dedicated open space must amount to at least 20 percent of the site. The site plans indicate that the dedicated open space exceeds this required amount. • 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. Z23-12 Staff Report PB 7.6.2023 Page 5 of 20 AREA DEVELOPMENT ACTIVITY Oasis RMF-L Z23-12 Staff Report PB 7.6.2023 Page 6 of 20 TRANSPORTATION CURRENT CONDITIONS Possible Intensity of Current Zoning 69.46 acres of I-1 Zoning (ITE Code 110) 545,000 sq ft the typical build out of a building at 18% of the total site area 2.94 acres of R-15 Zoning (ITE Code 210) 7 Single-family Dwellings PROPOSED ACCESS Multi-family Phase Single-family Phase Primary Access Holly Shelter Road Blue Clay Road Secondary Access Blue Clay Road - Z23-12 Staff Report PB 7.6.2023 Page 7 of 20 EXISTING ROADWAY CHARACTERISTICS Affected Roadway(s) Holly Shelter Road and Blue Clay Road Type of Roadway(s) Holly Shelter Road – Major collector road Blue Clay Road – Major collector road Roadway Planning Capacity (AADT) Holly Shelter Road – 13,895 Blue Clay Road – 13,895 Latest Traffic Volume (AADT) Holly Shelter Road – 6,800 (2021) Blue Clay Road – 2,100 (2021) Latest WMPO Point-in-Time County (DT) Not available near subject parcel Current Level of Congestion Under Capacity Sources Source of Planning Capacity: WMPO Source of Latest Traffic Volumes: NCDOT (2021) TRAFFIC GENERATION Potential Traffic Generation at Current Potential Build Out Traffic Generated by Proposed Designation Potential Impact of Proposed Designation AM Peak Hour Trips 408 237 -171 PM Peak Hour Trips 361 288 -73 Assumptions Potential Current Zoning Build Out – 545,000 square feet of General Industrial, the typical build out of a building at 18% of the total site area within the I-1 zoning district, and 7 single- family dwellings, the typical development allowed within the R- 15 zoning district. Proposed Development – 521 total residential units of which 243 are multi-family units, and 278 mixed single-family attached and detached dwelling units. Sources WMPO & approved TIA TRAFFIC IMPACT ANALYSIS (TIA) New developments that are anticipated to generate more than 100 trips during any peak hour period are required to submit a traffic impact analysis (TIA) as part of their rezoning application. A team of NCDOT, WMPO, and County planning staff work with an applicant’s traffic engineers to develop the scope for the TIA, including the study area, the traffic data which must be collected, trip distribution, and the developments and background traffic growth that must be analyzed. This document is used to identify off-site transportation improvements required to mitigate the impacts of the development and must be approved by the WMPO and NCDOT. Z23-12 Staff Report PB 7.6.2023 Page 8 of 20 Approval Date April 12, 2023 Development Proposal Analyzed 57 single family detached dwellings, 231 single-family attached dwellings, and 240 multi-family housing (Mid-rise) units. Study Intersections - Holly Shelter Road at I-40 EB Ramps - Holly Shelter Road at I-40 WB Ramps - Holly Shelter Road at Blue Clay Road - Sidbury Road at Dairy Farm Road - Holly Shelter Road at Site Access #1 - Blue Clay Road at Site Access #2/Concrete Plant - Blue Clay Road at Site Access #3/Kerry Drive - Blue Clay Road at Site Access #4 Trip Generation - 253 AM peak hour trips - 288 PM peak hour trips - 3,410 average daily trips Traffic Data Collection October 25, 2022 - I-40 Michael Jordan Fwy On/Off-Ramp and Holly Shelter Road - Blue Clay Road at Holly Shelter Road - Dairy Farm Road and Sidbury Road Trip Distribution and Assignment - 5% to/from the North via I-40 - 30% to/from the South via I-40 - 10% to/from the East via Holly Shelter Road - 10% to/from the East via Sidbury Road - 20% to/from the West via Holly Shelter Road - 25% to/from the West via Sidbury Road Approved Developments & Background Growth - Growth Rate – 2% per year Required Improvements - Signalize the intersection at I-40 Eastbound Ramp at SR 1002 (Holly Shelter Road) - At I-40 Westbound Ramp and SR 1002 (Holly Shelter Road), either signalize the intersection and provide necessary coordination (recommended) or construct an exclusive northbound right turn lane on I-40 westbound ramps, with 400 feet of storage, appropriate deceleration, and taper. - At the intersection of SR 1002 (Holly Shelter Road) and SR 2181 (Blue Clay Road), construct an eastbound right turn lane on SR 1002 (Holly Shelter Road) with 100 feet of storage, appropriate deceleration and taper and construct an exclusive northbound right turn lane on SR Z23-12 Staff Report PB 7.6.2023 Page 9 of 20 2181 (Blue Clay Road) with 100 feet of storage, appropriate deceleration and taper. - At SR 1002 (Holly Shelter Road) and Site Access #1, construct an eastbound right turn eastbound right turn taper of 200 feet on SR 1002 (Holly Shelter Road), construct site access (northbound approach) with an internal protected stem of 50 feet, measured from the right-of-way and with one ingress lane and one egress lane, and provide stop controls for northbound approach. - At SR 2181 (Blue Clay Road) and Concrete Plant Driveway/Site Access #2, construct site access (eastbound approach) with an internal protected stem of 50 feet measured from the right-of-way, and with one ingress lane and one egress lane, and provide stop controls for eastbound approach. - At SR 2181 (Blue Clay Road) and Concrete Plant Driveway/Site Access #3, construct site access (eastbound approach) with an internal protected stem of 50 feet measured from the right-of-way, and with one ingress lane and one egress lane, and provide stop controls for eastbound approach. - At SR 2181 (Blue Clay Road) and Concrete Plant Driveway/Site Access #4, construct site access (eastbound approach) with an internal protected stem of 75 feet measured from the right-of-way, and with one ingress lane and one egress lane, and provide stop controls for eastbound approach. SUMMARY The proposed project is located along two NCDOT maintained roads, both of which are under capacity. The applicant has had a TIA approved by the NCDOT and WMPO requiring several roadway improvements, including signalization of a nearby intersection, the addition of new turning lanes, and the lengthening of tapers and storage lanes. The subject site is in close proximity to the I-40 – Holly Shelter Road interchange and the future Holly Shelter Business Park, which are expected to generate more commercial traffic once developed. Z23-12 Staff Report PB 7.6.2023 Page 10 of 20 ENVIRONMENTAL • The parcel is not located within a Special Flood Hazard Area. • The entire site is within the Holly Shelter 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), Class III (severe limitations), and Class IV (unsuitable) soils. • CFPUA and New Hanover County are partnering on a proposed force main extension capital project along Holly Shelter Road from I-40 eastward to the future Holly Shelter business park. OTHER CONSIDERATIONS Schools • Students living in the proposed development would be assigned to Castle Hayne Elementary School, Holly Shelter Middle, and Laney High School. Students may apply to attend public magnet, year-round elementary, or specialty high schools. • A maximum of 7 dwelling units would be permitted under the current R-15 zoning density, and 521 units could potentially be developed under the proposed zoning for an increase of 514 dwelling units. • Based on a generalized historic generation rate*, staff would estimate that the increase in homes would result in an increase of approximately 113 more students than the number of students who are estimated to be already generated under the existing 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. Student numbers remained relatively stable between 2015 and 2020 (excepting the impacts of the COVID-19 pandemic), while 14,500 new residential units were permitted across the county. In addition, the student population is anticipated to only grow by approximately 1,300 students over the next 10 years based on the New Hanover County Schools Facility Needs Study. Z23-12 Staff Report PB 7.6.2023 Page 11 of 20 Development Type Intensity Estimated Student Generation Existing Development Undeveloped Total: 0 (0 elementary, 0 middle, 0 high Typical Development under Current Zoning 7 residential units Total: 2 (1 elementary, 0 middle, 0 high) Potential Development under Proposed Zoning District 521 residential units Total: 115 (47 elementary, 26 middle, 36 high) *The current general student generation rate was calculated by dividing the New Hanover County public school student enrollment for the 2022-2023 school year by the number of dwelling units in the county. Currently, there are an average of 0.22 public school students (0.09 for elementary, 0.05 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** (2022-2023 School Year) *Enrollment is based on the New Hanover County Schools student numbers for the 2022-2023 school year. **Capacity calculations were determined based on the capacities for the 2022 -2023 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 Projected Enrollment of Assignment School Capacity of Assigned School w/Portables Capacity of Assigned School Funded or Planned Capacity Upgrades Elementary 91% Castle Hayne 422 523 81% None Middle 92% Holly Shelter 851 991 86% None High 99% Laney 2214 1941 114% None Z23-12 Staff Report PB 7.6.2023 Page 12 of 20 NEW HANOVER COUNTY STRATEGIC PLAN • One of the goals of the New Hanover County Strategic Plan for 2018-2023 is to encourage the development of complete communities in the unincorporated county by increasing housing diversity and access to basic goods and services. • The proposed RMF-L conditional zoning district (CZD) would allow for an increase in housing diversity. • The predominant housing type in the area is single family detached at 76%. Under the proposed RMF-L district the site would allow for multi-family attached (apartments), and single family attached (townhomes) and increase housing type diversity by reducing the percentage of single family detached (76% to 60%) and increasing the percentage of multi-family units (0% to 10%) and single family attached units (9% to 18%). • The subject property is located in the Castle Hayne community area, where 29% of residents currently live within one-mile of a convenience need (grocery store, retail staples, pharmacies, etc.), a support service (urgent care, primary doctor’s office, child & adult care, etc.), and a community facility (public park, school, museum etc.). Under the proposed RMF- L district and because the number of proposed units would be beyond one-mile of current basic goods and services, the number of residences within one-mile of goods and services would decrease to 26%. Z23-12 Staff Report PB 7.6.2023 Page 13 of 20 Existing Conditions Holly Shelter Road looking east Holly Shelter Road looking west Subject site from Blue Clay Road Concrete plant across Blue Clay Road Z23-12 Staff Report PB 7.6.2023 Page 14 of 20 Representative Developments Representative Developments of I-1 (Existing Zoning/Land Use): Light Industrial within Dutch Square Light Industrial within the N Kerr Business Park Z23-12 Staff Report PB 7.6.2023 Page 15 of 20 Representative Developments Representative Development of R-15 (Existing Zoning/Land Use): Clay Crossing Z23-12 Staff Report PB 7.6.2023 Page 16 of 20 Representative Developments Representative Developments of Single-family Attached & Multi-family Developments (Proposed Land Use): Woodlands of Echo Farms (City of Wilmington) Stephen’s Pointe Z23-12 Staff Report PB 7.6.2023 Page 17 of 20 Context and Compatibility • The subject property is located at 5210 Holly Shelter Road and 5735 Blue Clay Road. Both roadways are NCDOT maintained major collector roads. • I-1 Light Industrial, I-2 Heavy Industrial, and R-15 Residential zoning surround the immediate site, and B-2 zoning exists at the I-40 and Holly Shelter Road interchange. • The subject site is located adjacent to existing industrial uses, with heavy industrial located across Blue Clay Road and Holly Shelter Road. Other heavy industrial uses exist to the east and utilize Holly Shelter Road as their access point. • The proposal is located within one mile of a County invested business development, the future Holly Shelter Business Park. This development is expected to generate an increase in industrial and commercial traffic along the Holly Shelter Road corridor. • The development could serve as a transition between the industrial zoning to the north and west from the single-family residential parcels to the south and east. • The subject site is located just east of the I-40 – Holly Shelter Road interchange, an area that is primarily zoned for commercial development. This proposal could provide for housing that could support future commercial and industrial development within the area. • The applicant has designated buffering between the proposal and the existing single-family dwellings to the east and south. 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. Z23-12 Staff Report PB 7.6.2023 Page 18 of 20 Future Land Use Map Place Type General Residential Place Type Description Focuses on small-scale, lower density housing, associated civic and limited commercial services development that enhances neighborhood character. Types of appropriate uses include single-family residential, low-density multi-family residential, light commercial, civic, and recreational projects. Analysis The subject property is in the northern portion of the county, located along Holly Shelter Road between the I-40 access ramps and Blue Clay Road. Zoning along and directly off of this corridor includes a mix of residential uses, commercial zoning, and industrial zoning. Residential development patterns within the general area have progressively changed with more moderate densities. The General Residential place type provides opportunities for low to moderate density housing. While the proposed RMF-L district allows for a maximum of 10 dwelling units/acre, which is higher than the density range recommended for the General Residential place type (approximately 8 units/acre), the proposed development has a density of 7.19 dwellings units/acre. This density is generally consistent with the density range of the place type. The General Residential place type provides for a range of housing types and opportunities for households of different sizes and income. Development within this place type accommodates residential developments that can support commercial and industrial developments that are associated and promoted within other place types, such as the Employment Center and Commerce Zone place types. Along with the preferred density range, the proposal promotes the uses recommended within the General Residential place type and supports the Comprehensive Plan’s goal to provide for a range of housing types and opportunities for households of different sizes and income. The subject site is located between areas designated as Employment Center and Commerce Zone place types. The proposed rezoning would accommodate residential developments that could support commercial and industrial developments that are anticipated within these place types and is in line with the existing residential development on nearby parcels. Consistency Recommendation The proposed RMF-L rezoning is generally CONSISTENT with the 2016 Comprehensive Plan because the project provides for the density and range of housing options recommended in the General Residential place type. Furthermore, the housing types permitted by the proposed rezoning offer diverse housing options that could support commercial and industrial developments anticipated within the nearby Employment Center and Commerce Zone place types. Z23-12 Staff Report PB 7.6.2023 Page 19 of 20 STAFF RECOMMENDATION Staff’s recommendation is based on the policy guidance of the 2016 Comprehensive Plan, zoning considerations, and technical review. The proposal promotes the uses recommended within the General Residential place type and supports the Comprehensive Plan’s goal to provide for a range of housing types and opportunities for households of different sizes and income. The proposal could accommodate residential developments that would support commercial and industrial developments that are anticipated within the area. While the Comprehensive Plan recommendation for this site was established prior to plans for the Holly Shelter Business Park, the proposed RMF-L rezoning is generally CONSISTENT with the 2016 Comprehensive Plan because the rezoning provides for the density and range of housing options recommended within the General Residential place type, and the housing types permitted by the proposed rezoning would provide diverse housing options that could support commercial and industrial developments anticipated within the nearby Employment Center and Commerce Zone place types. As a result, staff recommends approval of the proposal and suggests the following motion with an additional condition intended to mitigate potential concerns related to additional residential development along a primarily industrial corridor. The applicant has reviewed but has not agreed to the condition prior to finalizing this staff report. I move to recommend APPROVAL of the proposed rezoning to an RMF-L district. I find it to be CONSISTENT with the 2016 Comprehensive Plan because the project provides for the density and range of housing options recommended in the General Residential place type. The project could also serve as a transition between adjacent industrial zoning and adjacent low-density, single-family residential uses. I also find recommending APPROVAL of the project is reasonable and in the public interest because the proposal could accommodate residential uses that could support the nearby Employment Center and Commerce Zone place types, with the following conditions: Applicant Proposed Conditions: 1. The applicant provide bicycle and pedestrian connectivity between the multi- family phase development and the single-family phased development. 2. No structure on the parcel shall exceed 45’ in height and a maximum of 3 stories. Additional Recommended Condition: 1. A declaration statement shall be included in all future deeds and leases related to the subject properties stating the property or lease is in proximity to existing and future commercial and industrial activities that may result in noise, vibration, commercial heavy vehicle traffic on area roadways, lights, odors, and other factors associated with industrial development which may occur any time during the day or night. Z23-12 Staff Report PB 7.6.2023 Page 20 of 20 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 to a Conditional RMF-L district. While I find it to be CONSISTENT with the purposes and intent of the Comprehensive Plan because the proposed density is in line with the residential housing densities outlined for the General Residential place type, I find RECOMMENDING DENIAL of the rezoning request is reasonable and in the public interest because the proposal will adversely impact existing and future non-residential development along an industrialized corridor and would also result in the loss of industrially zoned land.