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HomeMy WebLinkAboutCC MINUTES 2006 06 16 - SPEC MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL TUSTIN, CALIFORNIA JUNE 16, 2006 CALL TO ORDER - 9:02 A.M. ATTENDANCE Present: Mayor Doug Davert; Mayor Pro Tem Tracy Worley Hagen; Councilmembers Jerry Amante and Tony Kawashima Absent: Lou Bone City Clerk: Maria R. Huizar, Chief Deputy City Clerk Others Present: William A. Huston, City Manager and Douglas C. Holland, City Attorney PUBLIC INPUT - None PRESENTATION - THE URBAN LAND INSTITUTE (ULI) ADVISORY SERVICES PANEL About Urban Land Institute (ULI) . Established in 1936 . Independent nonprofit education and research organization . Mission: To provide responsible leadership in the use of the land in order to enhance the total environment . More than 30,000 members worldwide . Representing the entire spectrum of land use and real estate development disciplines About ULI Advisory Services . Bring the finest expertise in real estate to bear on complex land use and development projects . Over 500 ULI-member teams assembled since 1947 to assist sponsors in finding creative and practical solutions The City of Tustin engaged ULI to address several issues and opportunities - Identify infill development opportunities - Expansion of residential and commercial revitalization activities - Suggest market based revitalization strategies - Provide input on regulatory policy enhancements The Process . Studied and discussed information provided by the sponsor . Toured the project areas . Met with stakeholders and listened to their concerns City Council Special Meeting Minutes June 16. 2006 Page 1 of 10 . Debated the issues The Panel Richard J. Dishnica (Chair) President The Dishnica Company LLC Point Richmond, California Ray Brown President Ray Brown Consulting Memphis, Tennessee Paul D. Charles Executive Director Neighborhood Recovery Community Development Corporation Houston, Texas Victor Karen Director of Advisory Services RF Walsh Company, Inc. Boston, Massachusetts AI Levine Deputy Executive Director Seattle Housing Authority Seattle, Washington R. Terry Schnadelbach Professor and Chairman University of Florida Department of Landscape Architecture Richard Shields Partner Mesa Development Chicago, Illinois Christine Vina Special Projects Coordinator City of San Antonio Planning Department San Antonio, Texas Orange County Market Strength Population: 2,964,800 Median Family Income: $78,300 Per Capita Income: $40,380 Median Home Price: $617,000 Civilian Workforce: 1,586,500 City Council Special Meeting Minutes June 16, 2006 Page 2 of 10 Unemployment: 3.8% Tustin Market Strenqth Population: 70,871 Median Family Income: $60,092 Per Capita Income: $25,932 Median Home Price: $610,000. Workforce: 41,600 Unemployment: 3.4% Tustin Market Advantaqes . Central Location and Highway Access . Neighborhoods . High Demand for Housing - For Sale - Rental . Stock of Affordable Housing . Tustin Unified School District . Tustin Legacy Success Tustin Market Environment . Residential Market Strength: - For-sale at $375 psf to $490 psf and rising Product absorption of 6/7 units/month - Construction costs of $145 to $180 psf and rising . Neighborhood and Service Retail Capacity - Small unit (<9,000 sf each) rents of $2.50 to $3.50 psf - Small retail shell construction costs of $120 to $140 psf . Commercial/office - Rents of $2.50 to $3.50 and office condo (medical) . Rental/Manufactured Housing - High occupancy and rents $1.15 to $1.60 psf . Financial Markets - Low cap rates in all income sectors (3-5%) Market Driven Opportunities . Large Parcel Development High School Site - MFG Homes Sites. - Center City Apartment Site. - Boys/Girls and Center City Industrial . Commercial & Mixed Use Assembly - Red Hill/l-5 Area/I-5 Frontage S55/Sycamore Intersection - Old Town/I-5 Mixed-Use Node - Tustin Hospital/Medical Office . Small Apartment Assembly. . Newport Commercial District Sites City Council Special Meeting Minutes June 16, 2006 Page 3 of 10 . Apartment Redevelopment/Exchange Effort' Challenges to Market Interest . ULI Study Area is intensely developed - Few vacant parcels and few City owned . Fractured land use and inconsistent parcel size, shapes and setbacks . Impact on housing residents and expectations/requirements for replacement dampen market interest . Rising construction costs . Zoning flexibility, process and requirements Challenge 1: Lack of Neighborhood Plans . Community requirements and expectations not defined . No priorities - left to the marketplace . Express larger ideas and higher value solutions . Process to create incentives, density bonuses and parcel assembly required . Create certainty with community, the market and City . Community understanding and support Challenge 2: Fractured Land Ownership and Uses . Patchwork Land use . Very small lots and super blocks adjacent to each other . Difficult assembly with many owners . I ncoherent street blocks . Complex zoning maps . Assembly challenge with "last parcel" syndrome Challenge 3: Lack of Community Amenities and Access . Lack of neighborhood parks and green space . Lack of connections and isolated parcels . Inconsistent design standards and relationship to streets and adjacent parcels Challenge 4: Rental Housing Values Makes Acquisition Difficult . High Rents and Occupancy . All-time Low Cap Rates . Appraised Value Method Imbalance - 4-Plex Sale Value -$900 K to 1.2 million vs. income method of $1.3 to $2 million (5-3% cap rate) - Large complex income method @ $6 million/acre vs. -$4 million/acre market comparable Challenge 5: Uncertainty in Context and Quality . Property owners uncertain of what will be next door - Example: One street has institutional use, store, housing, repair shop, bank in five adjacent parcels . Large number of buildings and mobile homes in area at the end of their useful life . Inconsistent maintenance and property use patterns impact neighbors . Code enforcement challenges City Council Special Meeting Minutes June 16, 2006 Page 4 of 10 Challenge 6: Need for Housing Policy . Uncertain process and requirements . Displacement and elimination concerns . Need for consistent approach for redevelopment and relocation . High construction costs create huge gaps in any new affordable housing and potentially limit interest in areas where high % replacement requirements exist . Community Development Corporations as a vehicle for implementation . Opportunity for linkage with Tustin Legacy Affordable programs Challenge 7: Increasing Construction Costs . Hyper construction increases impacting all construction sectors . Limits the ability to consider mid & high rise product with current market prices and rents . Creating large gaps in any affordable housing options . Construction trades more selective what and where they work . Energy Costs will impact construction costs even more in coming months/years Challenge 8: Regulatory Environment . Complex land use/zoning requires strategy and vehicle to create certainty in assembly and redevelopment . CEQA process strategy needed to advance redevelopment opportunities . Building heights, densities, zoning categories and flexibility needs reform . Parking, open space, affordable housing requirements relief needed Planning and Design . Study Area Concept Plan . Urban Design as Public Policy . Built Out Residential Areas . Center City & Old Town . Tustin Union High School Site . Newport Avenue 1 SR-55 Node . Red Hill Avenue 11-5 Freeway Node Urban Design as Public Policy Design Principles . Preservation and Improvement of Already Built Out Residential Areas within West Village and the Southern Gateway . Potential for Redevelopment at Higher Densities and Height (5 stories) within the Center City and Newport Avenue Corridor Design Guidelines . Creating a Pedestrian Friendly Environment . Increasing Streetscape Continuity . Clustering Land Uses at Intersections . Provision of Appropriately Sized Civic Squares and Parks . Landscape Planting . Building Size, Height and Form that is Compatible with Historic City Council Special Meeting Minutes June 16, 2006 Page 5 of 10 Precedent and Reinforces the Character of its Surroundings . Public Street Grids that are Open and Connective DEVELOPMENT AND IMPLEMENTATION STRATEGIES Civic Engagement and Dialogue: Create Community communication tool Neighborhood Database: ~ Mandatory Homeowners Associations ~ Voluntary Neighborhood Associations ~ Community/Neighborhood Based Organizations Communication Meaningful dialogue and communication cannot occur without basic understanding Communication from City must be disseminated through language and venue options Neighborhood Planning A PLAN identifies and guides the current state of a community to realizing the collective vision for its future ~ Improves quality of life ~ Provides for orderly city development ~ Addresses protection of natural, historical and cultural resources ~ Helps shape the City's urban form Components ~ Goals & Objectives: o Housing o Economic Development o Character Defining Elements o Transportation & Infrastructure o Community Facilities o Land Use Plans Land Use Plans- Community Vision Developer Certainty o Neighborhood and ROW Character, Design Standards o Site Development Standards o Open Space o Building Height o Parking o Types of Land Uses Regulatory Issues Land Use Designations . Allow higher residential densities . Create LU designations that incorporate Residential and Office/Commercial mix of uses . Address height limitations to accommodate densities at defined nodes City Council Special Meeting Minutes June 16, 2006 Page 6 of 10 Zoning Districts . Address increase in maximum height . Encourage zoning overlay districts to address: . protection of neighborhood character . more efficient permitting approval process Entitlements . Entitlement process is not developer friendly and is not producing the best buildings . Current entitlement process increases risks and cost for developers . Result is a reputation as an anti-development city Developer Comments . Unpredictable . Conflicting advice . Uncertain timetables . Late changes to Approved Plans . Excessive Parking & Open Space Requirements What Developers want . Predictability . Transparency . Objectiveness . Reliability . Flexibility to Create Better Projects One Approach . Institute a new Approval Process . Multi-family and commercial projects . Create with assistance from the ~ Development and Design Communities - Community and Resident Organizations - Business Community Objectives . Engage Citizen's and Developers early in the process . Alternative to Prescriptive Codes . Encourage Better Design . Responsiveness to a Site's Context . Provide Flexibility in the Application of Development Standards Standards . Broad Vision for Tustin . City Wide Guidelines . Neighborhood Plans . Neighborhood Design Guidelines focused on cultural, architectural or historically significant features . Holistic Comprehensive Approach City Council Special Meeting Minutes June 16, 2006 Page 7 of 10 Who . Planning Commission or Independent Board . Typical Members - Architect or Design Professional - Developer - Neighborhood Representative - Business Leader - Community Representative Process . Open Meetings . Staffed by Community Development . Concept Plans . Review Based on - Neighborhood plans & guidelines - Adjoining properties & development proposals - Community and Resident Reaction Other possible variations . Height . Density . Workforce Housing . Off Street Parking . Open Space Approval and Appeals . Project Approval by Board . Board Decisions Binding . Appeals limited to process not decisions Next Steps . Planning Division - Submission of detailed drawings - Final Design Review and Approval . Building Division - Building Permit Issued A Better Tustin Community Development Corporation (CDC) . What is a community development corporation? Community development is the economic, physical, and social revitalization of a community, led by the people who live in or have a stake in that community. . Community development emerged as a field about forty years ago, as a grassroots movement to improve the quality of life for residents. . What is its mission? . Improve the economy of a community . Enhance the physical nature of the neighborhood . Strengthen the social bonds among the people in the neighborhood City Council Special Meeting Minutes June 16, 2006 Page 8 of 10 . 3600 CDC's actively operating in the US - Successes: Job creation . Housing . Commercial I Retail space . Businesses started . Financing provided . Social Services . Leverage Investment 550,000 permanent positions 1,500,000 units 100,000,000 square feet 17,500 $10,000,000,000 150,000 clients annually 10 - 40 times investment . Organization structure: -- 501 (c)(3) Internal Revenue Service designation as a private tax exempt corporation - 7 member board of directors . Tustin Residents . Experienced Professionals . Stakeholders - Designate a Target area . Mission: Community revitalization . Workforce I Affordable housing development (& management) . Homebuyer/owner counseling and training . Neighborhood I community planning . Commercial/retail development . Job training . Social services provision . Day Care - adult and childcare . Community development financial institution . Health care provision . Business development . Initial Staffing: - Executive Director . Administration / Organization . Fund development . Relationship Builder . Financial & Fiscal Management Project Manager . Project Planning . Production Management . Project evaluation Office Assistant In conclusion, a CDC would: . Stabilize and Revitalize Neighborhoods . Articulate the Community's Vision for Redevelopment City Council Special Meeting Minutes June 16, 2006 Page 9 of 10 . Improve Government Effectiveness ADJOURNED - 10:36 a.m. DOUG DAVERT Mayor PAMELA STOKER City Clerk City Councii Special Meeting Minutes June 16, 2006 Page 10 of 10