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HomeMy WebLinkAbout05-08-19 Com. Dev. Com. MinutesDUBLIN CITY COUNCIL COMMUNITY DEVELOPMENT COMMITTEE Wednesday, May 8, 2019 Minutes of Meeting Mr. Reiner called the meeting of the Community Development Committee to order at 1:07 p.m. in Council Chambers. Committee members present: Mr. Reiner, Ms. De Rosa, Vice Mayor Amorose Groomes. Staff members present: Ms. Rauch, Mr. Papsidero, Ms. Husak, Ms. Goss and Ms. Martin. Guest Presenters: Ms. Laurie Volk, Zimmerman/Volk Associates, Ms. Sarah Woodworth, W- ZHA, Inc., and Mr. Greg Dale of Dale Clarion. Approval of the Minutes Vice Mayor Amorose Groomes moved to approve the minutes of the March 4, 2019 Community Development Committee meeting. Ms. De Rosa seconded. Vote on the motion: Mr. Reiner, yes; Ms. De Rosa, yes; Vice Mayor Amorose Groomes, yes. Bridge Street District Residential Market Study Ms. Volk stated that their study is based upon their proprietary target market methodology, which requires looking at market potential, not demand. They have practiced this methodology for over 25 years and have found it to be successful. She explained that they are looking at key demographics of the area that is being studied. One and two -person households are of particular interest because, nationally, 59% of all households are one or two person households. In the City of Dublin, 50% of the households contain only one or two people. This is significant in determining what kind of housing this population would be looking for. The median income in the City of Dublin is more than double the national median and the housing value is 1.5 times higher than the national median home value. She stated that in Dublin, 77% of housing units are owner occupied and two thirds are single-family detached. Ms. De Rosa asked for a quick overview of the data sources that were used for this study. Ms. Volk stated that she will explain that further in the presentation. Mr. Reiner's commented on the slide indicating 77% of units are owner occupied. He stated his interest in this because at one time, Dublin was rated the best city and the happiest city in America and one of the criteria of that was related to owner -occupied housing. He asked how we differed from other cities at 77%. Ms. Volk stated that 77% is a very high percentage. Most cities are half and half or have a higher percentage of renters. It depends on to what degree the city suffered during the recession. It is not necessarily indicative of an unstable community. In response to Mr. Reiner's question regarding the European trend toward renting, Ms. Volk stated that now and over the next five years are largely driven by the millennials. Millennials are looking for a walkable neighborhood. Older singles and couples also want to enjoy living in a neighborhood that is walkable and have less maintenance. She expressed the importance of having a range of housing types in order not to exclude any group. Committee Development Committee Minutes — May 8, 2019 Page 2 of 9 Vice Mayor Amorose Groomes asked if the discrepancy between the households and housing units is because of vacancy. Ms. Volk stated that there are some units that are unoccupied, but the number of those in Dublin is very low. Ms. Volk continued the presentation by stated that they also looked at the residents of Dublin by life stage. In Dublin, 50% of the households are traditional and non-traditional families, 38% are empty nesters and retirees and the remaining 12% are singles and younger couples. This percentage has increased since the first study was done. In response to Mr. Reiner's question regarding whether or not the Bridge Street District is what drew them in, Ms. Volk stated that Dublin provided housing for young people who want to live here and be near a downtown that didn't exist before Bridge Street District. It was critical for Dublin to be able to provide a range of housing and prices to respond to market changes. The first step in analysis is to understand where the potential market for new housing in the district is moving from. When looking at who is moving to Dublin, the city itself represents about 38% of the market, Franklin County is 30%, surrounding counties is 8% and the balance of the United States is 24%. How many households have potential to move to the Bridge Street District each year? Just under 4,400 households will move each year. They eliminated the households that they knew would not want to move to a mixed-use, walkable area, which came to 1,945 households. Most families want a backyard and do not want to live in a multi -family building. Mr. Reiner commented that there are people moving from the Short North to subdivision areas of Dublin. Ms. Volk stated that younger singles and couples represent 58% of the annual potential market for new housing in the Bridge Street District. Empty nesters and retirees make up about 24% and traditional and non-traditional families make up 18 percent of the annual potential market. The housing preferences of these households is: • Rental Apartment = 54% • Condo = 7% • Townhouse = 13% and • Detached houses = 26%. The housing currently available in Dublin includes: • Rentals ranging from $750 - $3,300 monthly ranging from a 466 -square -foot studio up to 2,400 square feet for a three bedroom; • Condos/Townhouses range from $250,000 - $750,000 for two or three bedroom units; and • Single-family detached range from $365,000 - $2.75 million. Ms. Volk shared what the data states is the financial capabilities of the target households for Bridge Street District. In response to Ms. De Rosa's question regarding the sampling of data, Ms. Volk stated that these are not just Dublin residents, but also regional and elsewhere nationally. Dublin residents make up only 38% of the annual potential market. Condo/Townhome buyers tend to be more local, whereas renters tend to be from out of town. Mr. Reiner stated that there were people who did not understand Bridge Street District or the need for that in our City, but the economics and studies showed the need for this development. Committee Development Committee Minutes — May 8, 2019 Page 3 of 9 Ms. Volk stated that it was a key move on the City's part. When they were here previously, a concern they heard was about the high number of single-family detached housing and that millennials are not looking for that type of housing. Millennials don't have a lot of furniture so smaller units work well for them. As millennials mature and start families, they will be looking for single-family detached homes, so Bridge Street also created a market for resale of these homes in the future. With regard to how fast they will rent or buy new market rate units, the rental market is 25%-35% and the for -sale market is 5%-25%. The annual market capture could be 383 to 438 units per year over the next five years, with most of those being rental loft and apartments. Ms. Volk reiterated the strong market for walkable districts. The walk score for the Bridge Street District is 58, which still falls short of the target score of 70 plus. Bridge Street has been a visionary transformation and should continue, not be squandered. In response to Ms. De Rosa's question regarding how many apartment units are in Dublin citywide, Mr. Papsidero stated there are 1,290 units that have been constructed in Bridge Park and Tuller Flats. As for citywide, Ms. De Rosa feels that would be an important statistic to know as the decisions from an economic perspective stay balanced. It is not necessarily what you can do, but rather what you shou/d do. Understanding the data around what the footprint looks like now and how the City compares to other communities is critical. Vice Mayor Amorose Groomes stated that many of the other apartments are in far more walkable neighborhoods with schools and shopping close by. Ms. De Rosa requested that staff follow-up and provide the data. Vice Mayor Amorose Groomes wanted to discuss the conclusion regarding the significant new housing required to capture the deep potential market. She would like to see Dublin have more potential market for better quality housing. The concerns for the housing for BSD is that the code required that they be convertible and could serve many purposes over the course of time. Many of the great urban walkable neighborhoods in this country are made up of buildings that served another purpose prior to becoming housing. For whatever reason, the buildings that Dublin approved for residential are not constructed in a way that could serve other purposes over time. The City has participated in the financing of these buildings for up to 30 years. At the end of the 30 years, what is the residual value that will remain with those properties? She is not necessarily interested in capturing all of the potential market. There is a market for gas stations and drug stores, for example, neither of which she is interested in capturing. She is not certain that the City has an interest in capturing stick construction apartments that do not stand the test of time. Ms. Volk stated that she was reporting about what the market could do. Clearly, what happens in a City is the result of what the City wants to see, what the developer is capable of doing and what the market says can be supported. There is a very strong market in Dublin. Her experience with conversions for property are more often for office that is converted to residential not vice versa. What new units contribute to a district is more people visit the shops, eat at the restaurants, bring more vitality and enhances the experience of those who work there. She has done 92 downtown studies in existing cities and it is always about getting more people to live downtown and creating a neighborhood. Committee Development Committee Minutes — May 8, 2019 Page 4 of 9 Vice Mayor Amorose Groomes stated that the issue is when we talk square footage, these square footages are far different than what was discussed 30 years ago. Ms. Volk stated that the market is changing. Vice Mayor Amorose Groomes stated that the market is changing and will change again. There is only so much real estate to be had. It is incumbent upon the City to be flexible to meet the changes to the market as they occur. Her point is not about converting residential to office, although that is her preference along Riverside Drive; the point is spaces need to be constructed in such a way to be able to respond to market demands in the future. Ms. Volk stated that they are showing the City what the market can do, but what happens in Dublin is up to Council. She reiterated that they are providing market findings only. Ms. Woodworth, W-ZHA, Inc., stated she does pro -formas regarding the economics of rentals, and stick construction does meet lower price points. Mr. Reiner stated that Ms. Woodworth's point translates to the $45,000 a year salary of an IT young professional who wants to live in a walkable district, but needs affordable housing. Another consideration with the Bridge Street District and wanting people to live and work in the same area is that it wouldn't add to the rush hour traffic on the roads. The first visionary move of this City years ago was to create wealth and now the visionary concept is a walkable environment. Ms. De Rosa stated that we need to understand the economic implications of maxing out. She referenced MORPC's Insight 2050 Corridor Study. It is vitally important to understand what we need to look at (traffic, economics, etc.) before moving on to the next phase. Mr. Papsidero stated that other communities looking at the 2050 Corridor Study will likely defer to the development community to respond, whereas Dublin has taken an entirely different approach. Dublin took the perspective of building "places," which will be more sustainable and more attractive. Ms. De Rosa stated that it is a brilliant strategy for a community and now there is data, but if it isn't put into a framework of some kind, it isn't very useful. Mr. Papsidero stated that there have been some successes, but it is important to figure out the next round of strategies to make sure it is sustainable. Mr. Reiner stated that it is difficult to forecast the market as it will continually change. Ms. Volk stated that they were looking out five to seven years. Ms. De Rosa stated that it may have to be 10 to 15 years out, just because of the length of the planning phase; then, take a step back and put it into context. We also should explore what our neighbors are planning to do. Ms. Volk stated that Columbus has responded very well to the market. Millennials are comprised of a variety of people, and some like the smaller downtown feel. In response to Mr. Reiner's question regarding the meaning behind a 70 walkable score, Ms. Volk stated that the walkable score is a flawed methodology but has been used for a long time. If the score is below 70, that is considered to mean that an automobile would be required. If needs can be met within a walking distance, then the walkable score would be higher. In response to Ms. De Rosa's question regarding access to public transportation, Ms. Volk stated that there is a public transportation score as well. Ms. De Rosa asked how often the walkable scores are updated and who is responsible for the updates. Committee Development Committee Minutes — May 8, 2019 Page 5 of 9 Ms. Volk stated that Zillow owns it. Ms. Woodworth stated that increased walk scores translate to increased property values. Bridge Street District Office, Retail and Hotel Market Study Ms. Woodworth stated that she was present for the study in 2008 that was done and she would be presenting the findings for retail. She stated that it was important to look at the Columbus region, and she sees Dublin as a bright spot in the region. Dublin is a city that is growing faster in population and projections in terms of employment. When she was in Dublin ten years ago, there was concern over the lopsided portfolio in terms of residential as well as office and entertainment retail. Dublin was a destination for businesses, but there was a need for walkable spaces and for companies to be able to recruit and retain talent. A number of interviews were conducted in her research and a few key points brought out were: • Bridge Park expands the offerings in downtown. It does not compete with, but rather enhances the downtown; • It has helped Dublin maintain itself as a competitive office location; • It is an attractive visitor and meeting destination — a business amenity to entertain and accommodate business visitors; and • It is a community amenity. The office market statistics stated that between 2011 and 2018, the Columbus market got absorbed by the suburban submarkets with regard to occupied space. Ms. De Rosa sought clarification regarding how to read the slide offered by Ms. Woodworth illustrating the new occupied space. The total demand grew by 4.2 million square feet, and the suburbs got 70% of the demand. Mr. Reiner stated that it is important to note that the perception is that everything happens in downtown Columbus. Ms. Woodworth stated that nationally, suburbs have the lion share of office parks. Vice Mayor Amorose Groomes asked how many suburbs were included in the calculation. Ms. Woodworth stated there are nine submarkets. Vice Mayor Amorose Groomes asked how the calculation was done. Ms. Woodworth stated that of the occupied space, Dublin has maintained its share of the office space pretty consistently at about 21-22%. Ms. De Rosa asked a clarifying question regarding Dublin losing market share if we stayed at 21% but the market has grown. Discussion followed regarding how much the market has grown and how much occupied space Dublin has maintained. Ms. Woodworth stated that the reason the Bridge Street plan was developed was because Dublin was recognized as a major office location and there was concern that there were vacancies and only one product type. Dublin clearly has more office space than any of the other submarkets. In response to Vice Mayor Amorose Groomes' question regarding which submarkets shown in the presentation are tax abated, Ms. Woodworth stated that Columbus, New Albany, Easton, Hilliard and Polaris are some that offer abatements. Vice Mayor Amorose Groomes stated that the City of Dublin offers a lot of economic development incentive agreements versus abatements, so how does that compare? Ms. Woodworth stated she does not know how those incentives translate per square foot. Committee Development Committee Minutes — May 8, 2019 Page 6 of 9 Ms. De Rosa stated that the number of those that we do is very small. She would like to see the measure of growth in the submarkets and who is doing the most growing. Mr. Reiner stated that Ms. Woodworth shared that there was $4 million in office growth. Ms. De Rosa asked of that $4 million, how much was the city of Dublin? Ms. Woodworth stated that Dublin maintains the market share as the number rises. Dublin's rate of growth is rising with the overall total growth. Ms. De Rosa stated that she would like to see an overlay on the presentation to see where the other suburbs are growing. Ms. Woodworth stated that she can provide that to Council, but generally Dublin has maintained market share. Ms. Woodworth added that tax abatements translate into $4-$5 per foot. Due to the changes in how we work, the square foot per employee is dropping and it is projected that the reduction will continue. The increase in density of office space impacts parking, rest rooms, etc., and supports the need for a mixed-use district. Another consideration in the market is Bridge Park and the live, work, play environment that businesses are seeking. Ms. Woodworth stated that office market projections were done using a conservative approach while maintaining the Dublin share. Bridge Park's mixed use advantage is a big opportunity. Existing suburban office will continue due to companies who like the lower rent but still want to be located in Dublin. Multi -tenant buildings are well occupied. Ms. De Rosa asked about the trend to multi -tenant buildings versus headquarters for companies. Are they seeing this trend? Ms. Woodworth stated that in trying to secure the workforce, companies are doing what they need to do. In her experience, it has not translated to no headquarters, but the shortage and scarcity of talent has prompted companies to use mixed-use settings as branding opportunities to offer the lifestyle desired for these workers. Ms. De Rosa stated that Dublin has been promoted as a headquarter -type of place and given all she has read, she would like to think through the impact of that. Ms. Woodworth stated that they have seen headquarters or large companies moving out of the suburbs and into more mixed-use settings because they see the value in the amenities and the walkability. Mr. Reiner reiterated the need for hotels and amenities in a business environment. Vice Mayor Amorose Groomes stated that connectivity with sidewalks is not complete in some office areas. There are opportunities to improve connections to existing amenities that are relatively inexpensive. Ms. Woodworth stated that the demographics in Dublin are very strong. When looking at competitors such as Easton, the retail spending is community oriented. In response to Ms. De Rosa's question regarding Amazon's impact, Ms. Woodworth stated that the retail market is changing. We need to be aware that bricks and mortar retail is changing. We are a community shopping center and not a regional shopping center. Ms. Woodworth commented regarding eating and drinking establishment patrons, that there are more employees using these than residents. Strong downtowns should be able to capture about 20% of their primary market (15 -mile radius), Polaris is getting 30% drink capture, Easton captures 20%, but Dublin captures only 8%. Vice Mayor Amorose Groomes stated that this was from 2017. Many restaurants have opened in Dublin since then, so what would it be now? Ms. Woodworth stated she could run the numbers but it likely wouldn't be over 10-12%. Dublin should be able to capture much more of a percentage of the market. Ms. De Rosa asked what the community wants it to be. Committee Development Committee Minutes — May 8, 2019 Page 7 of 9 Ms. Woodworth stated that a strong downtown is an entertainment destination for people. Retail is specialty infill. Hotel market numbers show room nights increased and revenue per available room has been maintained. Vice Mayor Amorose Groomes stated that the DCVB just provided a report showing a decrease in room rate. Ms. Woodworth stated that there is a perceived need for meeting space. While not part of her study, it did come up often in interviews with businesses. In response to Ms. De Rosa, Ms. Woodworth stated that the smaller organizations did mention it as well. Hotel market prospects show about 550-870 rooms over the next 10 years. She is aware that two hotels are planned. Mr. Reiner stated that people will be drawn to Dublin for restaurants and the new bridge. Ms. Woodworth stated that the recreation market has not yet been tapped and there are many opportunities. Ms. De Rosa asked the presenters to share what other communities are doing, what Dublin should be doing and what are the cautions. Ms. Volk stated that she feels strongly that Dublin can't stop now. There is a great foundation for a great expanded downtown. It does not impinge upon neighborhoods but enhances the neighborhoods and the rest of the City. It is providing alternatives in residential, retail offerings and the kind of office space available. Even in cities that are overall losing populations like Detroit and Baltimore, they are expanding in their core because more people are choosing to live in walkable neighborhoods. She does not see that changing significantly with the next generation — the "I -Gen." They may be more disruptive than the millennials in terms of the changes they have made in way of life. Keeping flexibility in mind for the future is essential. In response to Ms. De Rosa's request for a cautionary note, Ms. Woodworth stated that she would caution not to over -park. Mobility is changing and we will be in a world of automated shuttles, and transit will become cheaper. She also advised to maintain a mix of uses. Vice Mayor Amorose Groomes shared hearing the CEO of Honda talk about the future of cars and transportation. The capacity of existing roadways could quadruple. He stated that the biggest losers in vehicle automation will be the major metro cities who have major investments in mass transit. Ms. Volk stated that Greenville, NC, started with commercial uses and now have a lot of residential. She often cites Dublin as an example because of Bridge Park. Ms. Woodworth stated that residential is there for the office. The different product types are important to both executives and to new talent. Historic District Code Update and Design Guidelines Ms. Rauch provided a quick overview of the Historic District projects. The boundary changes are in order. The bigger questions for staff are regarding the code updates. Council's direction was to pull the Historic District out of Bridge Street Code and go back to the previous districts. Staff felt there are details still included from Bridge Street that are necessary to retain in the Historic District, for example, landscaping and signs. However, these details do make it more complex in the Historic District. Staff would like the feedback of the committee regarding the code update Committee Development Committee Minutes — May 8, 2019 Page 8 of 9 In response to a question from Vice Mayor Amorose Groomes, Ms. Rauch stated that the Z1, the Plaza, Z2, the library and the parking garage would all be placed in the Scioto neighborhood. Vice Mayor Amorose Groomes stated that she did not see any work reflected that ARB has done on this. Ms. Rauch stated that ARB has not reviewed it yet; staff wanted to check-in with Council first. ARB is aware of the work underway. Mr. Dale stated that they did meet with ARB in the process to gather their input. Ms. Rauch stated that this is the first draft. Vice Mayor Amorose Groomes stated that they had talked about renaming the Architectural Review Board. Perhaps that should be done first so the document does not have to be adjusted later. Ms. Rauch stated there are two parts of this: • Zoning regulations and new districts; and • Consolidation of the ARB section of the code (name, membership, responsibilities, etc.). Ms. Rauch stated that the name would be the Historic Preservation Commission based upon their responsibilities. In response to Ms. De Rosa, the name was brought up from staff conversation. Mr. Papsidero stated that the emphasis has been on preservation and ARB's jurisdiction has been growing. Ms. De Rosa stated that naming can be a sensitive topic and suggesting that ARB could have suggestions for a name change. Mr. Reiner agreed that changing the name makes sense. Ms. De Rosa agreed, but wants to be sensitive to its membership. Mr. Papsidero stated that the constituency nationally is the Association of Preservation Commissions. Mr. Dale added that preservation is their charge. In response to Ms. De Rosa's question regarding the historic boundaries around the school, Ms. Rauch stated that the map looks the way it does because they were trying to capture the 1919 building. She suggested that the 1919 building could be covered under Appendix G as a historic building outside of the district that still falls under ARB review. Vice Mayor Amorose Groomes stated that a transition area is needed and that is what this section is. It is important to keep as much as possible in the Historic District that isn't redeveloped. In response to Ms. De Rosa's question regarding why not put it all in, Vice Mayor Amorose Groomes stated that it is a downzoning for the balance of that property. Ms. Rauch stated that it is not historic. The map looks this way because of trying to capture the 1919 building and follows the parcel lines. Vice Mayor Amorose Groomes stated that it could be bigger, but the key items are the cemetery and the 1919 building. Discussion followed regarding what the Schools could do. Mr. Papsidero stated that the east side of Sells Middle School would have to go to ARB, but the west side would go to ART for review. They would have to rezone for other uses as currently, only public use is allowed. Vice Mayor Amorose Groomes stated that she wanted to redraw the lines so that the school building will all be reviewed by the same body. Ms. De Rosa stated it might be a worthwhile conversation with the schools. Ms. Rauch stated that the Code attempts to consolidate the ARB current section of code with the new zoning districts being removed from the BSD. It includes boundaries of the district, the uses permitted within those districts, site development standards, setbacks, parking, etc. Committee Development Committee Minutes — May 8, 2019 Page 9 of 9 The meeting was adjourned at 3:39 p.m. V, D�/ uty Cle.'rk of Council