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HomeMy WebLinkAboutAgenda Item - 2020-05-19 - Number 7.3 - Rezoning of Properties for Affordable Housing (03) 7.3 ro,A 4 COUNCIL REPORT V �r 0 QREGD‘4 Subject: City Council Initiative - Rezoning of properties for affordable housing Meeting Date: May 19, 2020 Staff Member: Scot Siegel, Planning and Building Services Director Erik Olson, Senior Planner Department: Planning and Building Services Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑X Council Direction ❑ Consent Agenda Staff Recommendation: Initiate comprehensive plan and zoning changes for multifamily affordable housing. The City Manager is also proposing to waive the fees for these applications, if Council concurs, because the plan and zone changes are intended to facilitate construction of affordable housing. Recommended Language for Motions: Move to initiate comprehensive plan and zoning changes for multifamily affordable housing. Project/ Issue Relates To: ❑X Council Goals/Priorities: Plan for future population and business growth to conserve the community's character and quality of life. Begin work to construct at least one new affordable housing project by rezoning the Boones Ferry Road staging area to allow for an affordable housing development. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 2 EXECUTIVE SUMMARY On March 17, 2020, the City Council reviewed a work plan for implementing various Council goals and initiatives, including one initiative to "construct at least one new affordable housing project by rezoning the Boones Ferry Road staging area". This report recommends actions for moving forward. It also introduces a new opportunity for working with the Sisters of the Holy Names as they pursue construction of affordable workforce housing on a portion of the former Marylhurst University campus. DISCUSSION A Council goal is, Plan for future population and business growth to conserve the community's character and quality of life. A Council initiative following from this goal is to "construct at least one new affordable housing project by rezoning the Boones Ferry Road staging area" (BFR site). The BFR site is located at the southwest corner of Boones Ferry Road and West Sunset Drive. It consists of multiple lots totaling approximately 2 acres. It is mostly zoned for office-commercial use and only a small portion is zoned for high-density housing. A comprehensive plan amendment and zone change is necessary for the site be fully developed with multifamily housing or mixed-use. The Lake Forest Neighborhood Plan allows for rezoning of properties for high-density residential use provided the site is located along an arterial street, such as Boones Ferry Road. If authorized by the City Council, staff will work with the Planning Commission to evaluate and recommend zoning options for affordable workforce housing on the BFR site, including any options with commercial (mixed-use) development that would complement affordable housing. As part of this process, staff will solicit input from Metro, Clackamas County, and area non- profit housing developers over the next few months to ensure that our work is consistent with Metro's and the County's Housing Bond Implementation Strategies. This will help ensure that any new zoning is consistent with Metro Housing Bond objectives and increase our competitiveness for receiving a Bond-funded project. Staff will also seek input from the adjacent neighborhood associations, area social service providers, the school district, and local business community, to ensure that the resulting plan addresses local needs. Marylhurst Affordable Workforce Housing Following closure of Marylhurst University, the Sisters of the Holy Names ("Sisters") initiated a planning process to evaluate potential reuse of the campus. The Sisters recently approached the City with an update on their progress and seeking planning assistance. They are working with Mercy Northwest Housing on a plan for constructing affordable workforce housing on a portion of the former Marylhurst University campus. See letter in Attachment 1. As detailed in the Sisters' letter, affordable housing at Marylhurst would help support the local workforce, increase the supply of needed housing in Lake Oswego, and reduce traffic pressure on Highway 43, for example, by providing housing options for some of the 400 employees of Mary's Woods. The Sisters intend to maintain community-institutional and open space uses on the remainder of the 40-acre campus, while continuing to preserve the historic resources on 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 3 the property. The existing Marylhurst Special District Plan and Campus Institutional/Office Commercial(Cl/OC) zoning were developed over thirty years ago and preclude multifamily housing on the former Marylhurst University Campus. See the Marylhurst Special District Plan in Attachment 2. Schedule and Process The rezoning process should begin this summer to meet the Council's goal of preparing the BFR site for a Metro Housing Bond funded project. Metro and Clackamas County have limited funds for these projects, and there is a window in which the City can partner with them to facilitate development of affordable housing on properties that it controls. (Staff is separately coordinating with Metro and the County to evaluate the different options for funding and development and will bring those options back to Council for a later discussion.) The Sisters too have a window in which they would like complete the rezoning process so that their partner Mercy Northwest can apply for funding in January 2021. The process for the two sites can run in parallel, though the timing for each will depend on the extent to which the City and the Sisters need to conduct public outreach. As discussed in the attached letter, the Sisters have already conducted some initial outreach and have received positive feedback on their concept; they started this process well before approaching the City. The Sisters' goal is to continue building support for the proposal and receive zoning approval by December so that Mercy NW can meet its deadline of January 2021 for applying for funding. A general timeline follows: May 2020 Council initiates rezoning process Jun Planning Commission work session (concept and process) Jun-Aug Public outreach Aug Planning Commission work session (draft plan and zoning changes) October-Nov Planning Commission hearings and adoption of findings Dec City Council hearing and tentative approval Jan Enact ordinance FISCAL IMPACT/ALTERNATIVES The comprehensive plan and rezoning initiative can be completed with existing staff resources. If the City Council concurs, the City Manager will waive the processing fees for these applications because they are intended to facilitate construction of affordable housing. The City fee for legislative/quasi-judicial amendments is approximately$12,000 for map amendments, and $6,000 for code text-only amendments. (The existing fee waiver in the Master Fees and Charges Schedule is only for development review applications for construction of affordable housing.) Under the Master Fees and Charges Schedule (Resolution 19-56), the following types of development review applications are exempt from paying system development charges and the City's development review fees; the exemption does not include map/code amendments: 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 4 No Ministerial Development, Minor Development, Major Development, Sign Code, Historic Preservation, Tree Code (for tree removal and mitigation for development of the multi- family structure) or Pre-application Conference fees will be charged under this Section 11 for Multi family Developments of 20 or more units where at least 10% of the proposed dwelling units are affordable to those earning 80% or less of Area Median Income and spending not more than 30%of household income on housing, consistent with Clackamas County Housing Authority's "Income Limits"for Affordable Housing, provided that all of the requirements of the covenant required by LOC 39.06.105(5) as amended by Ordinance 2810 are met. RECOMMENDATION Initiate comprehensive plan and zoning changes for multifamily affordable housing at the Boones Ferry Road staging site, and at the former Marylhurst University campus in coordination with the Sisters of the Holy Names. If the City Council concurs, the City Manager will waive the processing fees for these applications because they are intended to facilitate construction of affordable housing. ATTACHMENT 1. Letter from the Sisters of the Holy Names on affordable workforce housing, 4/28/2020 2. Marylhurst Special District Plan 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city ATTACHMENT 1 41140,119/7•0 e Sisters of the Holy Names of Jesus and Mary U.S.-antario Received April 28, 2020 z .`V 0li 2020 City Council Members Cityof Lake Oswego City of Lake Oswego Dear Mayor Studebaker and City Council, As you know, in 2018 the Marylhurst University (MU) campus reverted to the ownership of the Sisters of the Holy Names. While we Sisters were very sad to see the University close, we saw this as an opportunity to meet some other needs in the local community. To determine what these needs might be from a broad spectrum of people we held stakeholder sessions to share our values, ask what they value about the MU campus and seek input on local unmet needs. In every stakeholder group, affordable housing was mentioned as a need. We Sisters also realize that affordable housing is a great need in the area and consistent with our mission of being of service to the local community. We invited Mercy Housing NW to collaborate with us on building and maintaining affordable workforce housing on the MU campus. Mercy Housing NW would like to provide affordable workforce housing on our site and is conducting a feasibility study, which includes obtaining zoning clearance from the City of Lake Oswego to build multi-family housing. Our vision for the entire campus, in addition to affordable workforce housing, is to lease space to nonprofit agencies/groups that would further our traditional values and our desire to be of service. Such uses could include office space, educational purposes, cultural spaces including music and art studios and performance space, community space for meetings/lectures and occasional special events, food service primarily for people on campus, and environmental/recreational uses such as walking and community gardens. These are the same kinds of uses that MU had. Unfortunately,the existing Campus Institutional zoning, which was established decades ago for an educational institution such as the former university, did not include multifamily housing as an allowed use. The only institutional uses that are presently allowed are those that are associated with a school.Therefore, we are asking for the City's assistance in amending its zoning codes to facilitate the reuse of the campus and development of affordable workforce housing. Our most urgent priority now is to determine the quickest way to have affordable workforce housing on the MU campus. The Sisters of the Holy Names were one of the original co- PO Box 398, Marylhurst,OR 97036 503-675-710o info®snjmuson.org snjmusontario.org sponsoring Religious Communities that started Mercy Housing NW 30 years ago. We are grateful for the amazing housing programs they have established and continue to maintain in WA state. Their reputation for providing important services such as childcare and community building is impressive. It might be helpful to know some of our criteria for what happens on the MU campus. We have no intention of selling any of the property. Except for the affordable workforce housing, no new buildings will be constructed, and we intend to maintain the existing historic landmarks on the property. We are also committed to keeping some open green spaces and hope to move towards renewable energy. Eventually,we want the campus to be financially self-sustaining through various leases of space. We have appreciated the Lake Oswego City Planning Department's availability and advice to us as we begin to move through the process of permission to build affordable workforce housing. We respectfully request that the City work with us on changes to zoning that need to happen before building affordable workforce housing can begin on campus. We would like to be able to finish this process by December 31, 2020, so that Mercy Housing NW can apply for funding in January of 2021. We have retained land use and transportation experts to assist us and to work with City staff on the code amendments if you authorize the process. Thank you for your attention to our request. Sincerely, iacti iettiLt c�ztiG�d,5/1�77v 7C1//ilt-ef-4) iieh-APA) 5/26;W) ,--41 5)7j)71 Leadership Team Sisters of the Holy Names FE:P. LAND I x 1):,•2 s U.S.-Ontario Administrative Centre Sisters of the Holy Names of Jesus and Mary ` ' PO Box 398 e Maryihurst, OR 97036 Scot Siegel, FAICP, LEED-AP Planning & Building Services Director City of Lake Oswego PO Box 369 Lake Oswego, OR 97034 • ATTACHMENT 2 Special District Plans ❑ Marylhurst Area Marylhurst(View From Highway 43) w r 46, .1.,,s1 Marylhurst will continue to provide for housing, education, religious and community service needs of the region, while preserving and enhancing natural resources and aesthetic quality. EXHIBIT 3 (Ordinance 2640)/PAGE 579 Special District Plans D Marvlhurst Area BACKGROUND The three institutions of Marylhurst Education Center,Christie School and Convent of the Holy Names, all commonly known as the"Marylhurst Campus",occupy a site on Pacific Highway of approximately 183.3 acres. The campus has been partially developed with buildings in the eastern portions near River Road. These buildings have historically housed educational,religious,and charitable service facilities, residence halls and other related support services such as the cafeteria, sewage treatment plant,parking areas and recreation facilities. In recent times the Education Center has also utilized its available space for other governmental and nonprofit services. The campus has become the location for a wide range of education, cultural, social and governmental activities. The three institutions jointly still have well over a hundred acres of vacant land with the possibility for substantial development. The continued vitality of the institutions partially depends upon their ability to use their campus to expand and provide new services, such as the recently constructed Christie Cen- ter for emotionally handicapped children, and the residents of Lake Oswego,West Linn and the many people who benefit from their experiences at Marylhurst, have a strong interest in its future success. Expansion also raises several of the same opportunities and issues which were addressed for other land uses in the City, especially traffic and circulation, site design, and open space. The Marylhurst policies are summarized from a report,"Marylhurst,An Annexation and Plan"of May 1, 1979 which was prepared by the Marylhurst institutions. GOALS AND POLICIES GOAL 1: COMMUNITY AREA AND REGIONAL RELATIONSHIP Marylhurst will continue to provide for housing,education,religious and community service needs of the region. GOAL 2: NATURAL RESOURCES AND ENVIRONMENT The geophysical assets(trees,Willamette River,drainage courses,land contours and scenic views)will be preserved and enhanced. Appropriate environmental controls will be devel- oped to preserve fragile terrain and to protect against all types of pollution. GOAL 3: POPULATION DENSITIES AND GROWTH EXHIBIT 178rdlnalncelaT640SlideR ipURST AREA MHA-1 Special District Plans D Marvlhurst Area Future growth and population density will be controlled in a manner that will enhance and preserve the qualities of the campus, the surrounding neighborhood and the City. GOAL 4: COMMUNITY AND NEIGHBORHOOD IDENTITY The spirit of local identity will be fostered by encouraging participation in the activities of the larger community,preservation of the character of the campus. GOAL 5: ASETHETIC QUALITY AND COMMUNITY DESIGN The character and aesthetic quality of the campus will be preserved and enhanced through sound design of residential, institutional and commercial buildings, facilities, streets and other development. GOAL 6: OPEN SPACE An open space plan will be developed and implemented to protect the unique natural areas, provide recreational opportunities and help shape development patterns. GOAL 7: RESIDENTIAL LAND USE Residential development will provide a variety of choices to meet the needs of the community, including those with needs for special care, and will preserve the character of neighboring developed areas. GOAL 8: CAMPUS INSTITUTIONAL LAND USE The educational,social,cultural and religious activities of Marylhurst will be continued and expanded. Office campus use, as defined in the Comprehensive Plan, will be permitted in Campus Institutional areas. GOAL 9: TRAFFIC AND CIRCULATION Traffic generated from the Marylhurst campus will be controlled to maintain adequate ac- cess at controlled intersections and efficient internal circulation. LAND USE MAP DESIGNATIONS (TO BE ADDED TO LAND USE MAP, NOT TEXT) MHA-2LAKE OSWEGO EXHIBIVn dinance 2640)/PAGE 581 Special District Plans D Marvlhurst Area 1. The Marylhurst Education Center, Christie School, and Provincial House areas (sub-areas I, I- A, III) and the open undeveloped land east of the highway(sub areas II, IV)will be designated Campus Institutional. 2. The vacant land between Christie School and Old River Road(sub-area III-A)will be designated Residential R-10 (2.9-4.3 units per net acre, or 10,000-14,075 sq. ft. per unit). 3. The Marylhurst property immediately west of Pacific Highway(sub area V)will be designated as Residential R-10 (2.9-4.3 units per net acre, or 10,000-14,075 sq. ft. per unit). 4. The westernmost portion of the Marylhurst property (sub-area V-A) will be designated Resi- dential R-15 (0-2.9 units per net acre, or 15,000 sq. ft. or more per lot). 5. The stream corridors and drainage ways, Willamette River/Old River Road corridors will be designated as open space. (The Old River Road corridor is part of the Willamette River Gre- enway.) Land between the road and the river will be designated for public access. See map (Figure 3). POLICIES 1. A mix of uses within the Marylhurst campus will be allowed, including education, cultural, social, government and residential activities. 2. The campus-like character of the area will be maintained as much as possible. 3. Traffic and access will be controlled to preserve the capacity of Pacific Highway and the inter- sections at Marylhurst. Proper internal circulation will be provided. 4. The Willamette River Greenway will be preserved for scenic and recreational uses. 5. Designate the Marylhurst Area for a variety of land uses and establish the specific uses, condi- tions and design criteria for sub-areas within the campus, to assure proper development. 6. Require each sub-area to have a plan for circulation,parking,utilities,and general building place- ment as a condition of approval for all development other than single-family subdivisions. 7. Establish permissible uses,intensities,development criteria and conditions for specific sub-areas with the campus, in addition to other policies. EXHIBIT 3PWrdinalnce'aT640SlideRY HURST AREA MHA-3 Special District Plans D Marvlhurst Area a. SUB-AREA I: CAMPUS INSTITUTIONAL 1. Allowed uses will include educational, religious, social service, governmental, institutional housing and their supporting services. 2. The appearance and character of the present Marylhurst Education Center campus,especially the scale of buildings,parking areas,building locations, materials, open areas and landscaping,will be continued in new development. b. SUB-AREA I-A: CAMPUS INSTITUTIONAL 1. Uses should be located in a major building and no more than two buildings. 2. Design of access to the eastern portion of the site must provide for emergency vehicles. 3. Development may not occur beyond the top of the bans of the drainage ways. Removal of trees will be minimized as much as possible. 4. Access into the site must be designed to be compatible with the existing Education Building, and should be located on the north side. 5. Vehicle access or parking in the eastern portion of the site will be discouraged. 6. Drainage management must be designed to prevent erosion of the banks of the drainage ways which have a severe potential landslide hazard. c. SUB-AREA II: CAMPUS INSTITUTIONAL 1. Commercial uses allowed (including Office Campus) must be buffered from Pacific Highway. 2. Structures will be located to maintain open areas which preserve a campus-like setting. The view of St.Anne's Chapel from the southern access drive will be preserved. MHA-4LAKE OSWEGO EXHIBI3Ordinance 2640)/PAGE 583 Special District Plans D Marvlhurst Area 3. Site design will orient buildings towards views and preserve highway and access road views as much as possible. d. SUB-AREA III: CAMPUS INSTITUTIONAL e. SUB-AREA III-A: RESIDENTIAL(R-10) 1. Access to Old River Road must be denied to provide a safe inter- section,and to minimize disturbance to the wooded slope along the road. If these conditions cannot be met, the area must be provided access from the campus. 2. Residential development will be required to provide street trees. Development must be visually screened from the school and convent. 3. Emergency vehicle access from the campus side must be pro- vided. 4. Changes to topography will be the minimum necessary to develop the property. f. SUB-AREA IV: CAMPUS INSTITUTIONAL 1. Allowed uses will be Campus Institutional, including social service institutions and residential care facilities for the physically or mentally handicapped. Agricultural uses may be continued as long as they are compatible with new development. 2. A pedestrian access to Pacific Highway may be located at the north end of the site. g. SUB-AREA V AND V-A: RESIDENTIAL(R-10 and R-15, respectively) 1. Allowed uses will be residential(R-10 and R-15),with clustering encouraged. 2. Site design should assure that views to the east are preserved and utilized. 3. A unified site plan for each sub-area, required prior to develop- ment, shall include provisions for buffering the adjacent residential areas. EXHIBIT 3 (Ordina�ncel T640)/S��1naHURST AREA MHA-5 Special District Plans D Marvlhurst Area 4. Interior street rights-of-way shall be dedicated. Street trees will be required. 8. Assist Marylhurst in preparing architectural and site design criteria to be utilized as supplements to the Development Review standards for all future development at Marylhurst. The criteria will assure that development is harmonious with the existing campus buildings and landscaping. Criteria at minimum will assure: a. Maintenance of the architectural character of the existing buildings and landscap- ing. b. Scale, height, bulk, lot placement and building materials in new development which will maintain the open character and be properly related to the existing struc- tures. c. Preservation of scenic vistas to the east. d. New landscaping will complement existing, especially types and placement of trees. 9. Ensure that the natural drainage courses are designated as open space. No development will be permitted,except for utilities,drainage management improvements or low-intensity recreational improvements, such as trails. 10. Ensure maintenance of a setback along Pacific Highway,which will include a minimum of fifty feet from the right-of-way line, to provide for the planting of trees. The City will assist with providing and planting of the trees, subject to the budgetary process. 11. Require buffers between nonresidential campus uses and adjacent residential neighborhoods, including protection of views. 12. Require minimum changes in topography. Grading will be limited to that required for founda- tions, drainage management,parking areas and berms. 13. Assure that parking areas are scaled proportionately to the campus buildings and are landscaped to avoid the appearance of large,unbroken paved areas. 14. Strongly encourage residential site design which is clustered and preserves open areas. MHA-6LAKE OSWEGO EXHIBI3Ordinance 2640)/PAGE 585 Special District Plans D Marvlhurst Area 15. Assure that commercial uses are of a type and size to serve the residents and users of the cam- pus,without drawing a larger market, and are located away from Pacific Highway to avoid any strip development. 16. Assure that utility construction will be coordinated with development and will prevent or mini- mize disruption of the existing buildings, streets, and drainage ways. 17. The City shall(subject to the approval of the Oregon Department of Transportation,whenever applicable): a. Limit access from the campus to Pacific Highway to the two existing access points. b. Limit land uses to the degree necessary to ensure that total vehicle trips gener- ated by campus land uses maintain the capacity of Pacific Highway intersections. i. Prior to new development, a traffic study will be prepared which will determine the projected volumes on Pacific Highway,the capacity available to future development at Marylhurst and improvements necessary to maintain the highway or intersections within Service Level "D". c. Require that Marylhurst pay an equitable share of the cost of improvements to Pacific Highway for additional capacity and signalization required for additional devel- opment. d. Actively seek transit improvements and increases in the level of transit use in the Highway 43 Corridor, to reduce vehicle trips entering the State Street Corridor. e. Ensure that internal streets on the east side of Pacific Highway will remain private streets, except for the Residential area(sub area III-A). f. Require that internal access and circulation plans for each sub-area of the cam- pus will be prepared and approved as part of the Development Review for the first new development proposal for the sub-area. g. Require dedication of an additional ten feet of right-of-way on each side of Pacific Highway to widen the total to eight feet. h. Ensure that a minimum setback will be maintained along Pacific Highway at fifty feet from the right-of-way line to preserve the scenic corridor. EXHIBIT 178:-Miggiel aT640Slidegg bHURST AREA MHA-7 Special District Plans D Marvlhurst Area i. Allow no vehicular access from Old River Road, except to sub-area III-A. j. Assure safe pedestrian and bicycle circulation within the campus area and each sub-area. Whenever possible,walkways will be separated from vehicular ways. 18. Assure that the area designated as Willamette River Greenway along Old River Road(generally from the river to the top of the steep bank above River Road)is maintained in a natural aesthetic condition. a. Structures will not be permitted in the Greenway,except for recreational purposes or utilities. b. Recreational improvements will be in scale with the environment. Parking areas, if any, will be minimial. c. Trees in the Greenway will be preserved. d. No boat ramps will be permitted. 19. Designate the area between River Road and the river as Public Open Space,and the banks above the road and the drainage ways as protection Open Space. a. The City will attempt to negotiate an agreement with Marylhurst which will provide f 1 •. �n River Road and the .:.. ... . .. . .:... - �n • ;• •,ram I. .7*term Yr •- •r r ntZ. i _Y- iir ir iti. . : - : - - " ' '.7.'• ••. - �� . . Ti- - ...••, - LIia.MMail Figure 3 MHA-8LAKE OSWEGO EXHIBI3Ordinance 2640)/PAGE 587