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HomeMy WebLinkAboutApproved Minutes - 2022-02-23 PM Development Review Commission Minutes February 23, 2022 Page 1 of 5 CITY OF LAKE OSWEGO Development Review Commission Minutes February 23, 2022 The Commissioners convened at 7:00 PM at City Hall, in the Council Chamber, 380 A Avenue, Lake Oswego, OR 97034. Members present: Vice Chair Randy Arthur, Mark Silen, Craig Berardi, Bruce Poinsette, and Dwight Sangrey Members absent: Chair Jeff Shearer and Kirk Smith Staff present: Jessica Numanoglu, Planning Manager; Evan Boone, Deputy City Attorney; Evan Fransted, Senior Planner; Will Farley, Traffic Engineer; and Kat Kluge, Administrative Support MINUTES November 15, 2021 Minutes December 6, 2021 Minutes There were no corrections noted. Commissioner Sangrey moved to approve the Minutes for November 15, 2021, as submitted. Seconded by Commissioner Berardi and passed 5:0. Commissioner Berardi moved to approve the Minutes for December 6, 2021, as submitted. Seconded by Commissioner Poinsette and passed 5:0. PUBLIC HEARING LU 21-0077: A request for a Development Review Permit for a new 100-unit multi-family building, a Lot Line Adjustment to move lot lines between Tax Lots 400 and 404, and removal of 33 trees to accommodate the development. This site is located at 17600 Pacific Hwy (21E14 00400, 00404). The Staff Coordinator is Evan Fransted, Senior Planner. Evan Boone, Deputy City Attorney, gave an overview of the public hearing process, outlined the applicable criteria and procedures, and gave instructions for verbal testimony. Mr. Boone asked DRC members to declare any ex parte contacts (including site visits), biases, or financial conflicts. All DRC members present declared they have no ex parte contacts, conflicts of interest, and no bias. There were no challenges to the Commissioners’ rights to consider the application. Development Review Commission Minutes February 23, 2022 Page 2 of 5 Staff Report Evan Fransted, Senior Planner, presented the staff report. Mr. Fransted noted that 5 letters in support (G-100 to G-104) and 1 letter in opposition (G-201) of the application were received after the staff report was prepared. The site is a Unified Site that is approximately 50 acres in size, with frontages on Pacific Highway (Hwy 43) and Old River Road. It consists of three parcels and a cemetery. The site is zoned Campus/Institutional (CI) and is located in the southeastern portion of the Marylhurst CI area. Properties to the north are zoned CI/OC (the Mary's Woods Campus). Properties to the east and to the south are located within the city of West Linn and developed with single-family dwellings. Properties to the west are zoned R-10 and developed with single-family dwellings. The site contains 16 buildings, formerly used by Marylhurst University (with the first buildings being constructed in the 1930s). The University ceased operations in 2018, and the buildings are either currently vacant or being used as offices by small nonprofit organizations. The campus is served by private streets. As part of the development, 3 buildings (located on the southeast corner of the property) are slated for demolition. The 100-unit multi-family building will be located in the footprint of the 3 demolished buildings. With the lot line adjustment, the new lot will be 4.3 acres in size and is approximately 1500 feet from Pacific Highway. There is a delineated RP District, with a Class-1 Stream Corridor and the Willamette River Greenway Boundary extends over a portion of the site (neither having any portion proposed for development). The proposed lot line adjustment includes Parcel 2 (Tax Lot 400) and Parcel 3 (Tax Lot 404). Going from 38.12 to 40.47 acres and from 6.65 to 4.3 acres, respectively. The proposed development includes 144 parking spaces and approximately 54% open space and landscaping. The courtyard includes a plaza, a children's play area, and a community garden. There are 33 trees proposed for removal. Staff finds that none of the trees are significant, and that the removal of the trees will not have a significant negative impact on the character or aesthetics of the neighborhood. Staff concludes that the proposed tree removal complies with the tree removal criteria. Condition of Approval (COA) A-9 requires that the Applicant submit a final mitigation plan showing 33 mitigation trees, one of which must be native. Several building plan renderings were shown and described. The maximum building height is 45 feet, stepping down from 4 stories to 3 stories on one end. Each floor contains bicycle storage. The mechanical units are hidden on the roof and are not visible from the ground. Staff finds that the building design is complementary to adjacent multi-family buildings and that it integrates elements of existing buildings on the Marylhurst site by using asphalt shingles on the hip roof, wood framing on the entrance canopies, narrowed trim, brick cladding, vertical windows, and articulated bays. The total number of parking spaces available on the Unified Site will be 567. The Applicant submitted a Parking Study which found that the parking demand to be generated by the proposed 100-unit building will be 87 parking spaces (minimum required for other uses onsite is 111 parking spaces). Staff finds that the minimum required parking standards are met. Traffic generation for this area of the campus is limited to 327 weekday A.M. peak hour trips and 351 weekday P.M. peak per hour trips. The Traffic Study found that there would be approximately 298 A.M and 320 P.M. weekday peak hour trips, meeting the standard. LOC 50.03.003.2c requires that at least 10% of 20 or more units be continuously rented, leased, or made available at no more than 30% of the occupant's income level, that is at 80% of the Development Review Commission Minutes February 23, 2022 Page 3 of 5 median income level (according to the Clackamas County Housing Authority's income limits for Affordable Housing, adjusted for household size). The Applicant's narrative states that 100% of the units will be made available to residents earning 60% or less of the area median income. This requirement will remain on the property for at least 30 years. Questions of Staff Commissioner Berardi asked for confirmation that there would be 144 spaces available for the building. Mr. Fransted affirmed. Commissioner Berardi then asked that the projected demand for parking spaces be restated. Mr. Fransted replied that 87 parking spaces were projected to be in demand. Vice Chair Arthur requested a further description regarding the income requirements for the zone standard. Mr. Fransted explained that the requirement was put in place on the Campus when the Code changed to allow for Affordable Housing in the CI zone and that the income level is governed by the Clackamas County Housing Authority. Vice Chair Arthur then asked if there was a zoning requirement or option that allowed for disbursing Affordable Housing units throughout the community, rather than concentrating them in one building, on one site. Jessica Numanoglu, Planning Manager, added that the affordability provision was derived from an exemption that was already in the code that allowed Affordable Housing projects, meeting this same criteria, to be exempt from system development charges. Vice Chair Arthur asked for confirmation that these units would be rented, rather than sold. Mr. Fransted affirmed. Applicant Testimony Linda Patrick, representing the Society of the Sisters of the Holy Names of Jesus and Mary, gave a brief history of the Sisters’ mission and ministries. Following the closing of the University, the Sisters saw that Affordable Housing was a critical need in the community and this led to their partnering with Mercy Housing Northwest to develop the property to that end. Joe Thompson, President of Mercy Housing Northwest, described several aspects of their organization and of this project. He noted that they remain the property managers and will be involved with this project for, at least, the next 30 years. Resident Services was a core part of their approach, which made them different from other Affordable Housing providers. Part of their Resident Services include: Youth Programs, Education Programs, Affordable Workforce Housing for families, and Community Outreach Programs. He noted that many of the Mary’s W oods workforce commute between 30 to 90 minutes every day, and that they expressed interest in residing in this new building. He listed members of the Project Team. The Project Goals are to provide long-term affordable housing for families, preserve open space on campus, ensure building is accessible for all ages and abilities, design that blends in with existing campus buildings, energy efficient and sustainable, and create a long-lasting stable community that will allow families and children to thrive. Melissa Soots, Project Manager with Carleton Hart Architecture, relayed the process that lead to the final design. She noted that the courtyard clearly delineates the residential area of the campus from the remaining areas of the campus. She requested that the application be approved. Questions of Applicant Vice Chair Arthur asked when construction was expected to begin and when the units might be ready for occupancy. Chris Bendix, Project Developer with Mercy Housing Northwest, replied that they would start construction in August, 2022, with 18 months for completion, and move-in in early 2024. Vice Chair Arthur asked how the tenants would be chosen. Mr. Bendix answered that they Development Review Commission Minutes February 23, 2022 Page 4 of 5 followed several criteria in order to meet with the Fair Housing rules, in terms of marketing and advertising (done throughout the community), and income is reviewed for compliance with the standards. This property would have a mix of ages and sizes of family units, and there would be several onsite employees (management, maintenance, resident services). Vice Chair Arthur asked if there would be a van or bus offering for residents' use. Mr. Bendix replied that this was not discussed for this project, but could be revisited, as they have provided that service at some of their other properties. Vice Chair Arthur inquired whether any of the units would have balconies or outdoor living space. Mr. Bendix noted that most of the ground-floor units had patios, but not all, and one of the design constraints was due to the funding provided through the Oregon Housing and Community Services (OHCS) program. Commissioner Sangrey asked how Mercy Housing dealt with income evolution with the tenants. Mr. Bendix answered that the property would be regulated by the IRS Tax Credit program, and the tenants would be allowed to stay until their income exceeds 140% of the maximum allowed. Mr. Boone reminded members of the scope of the zone-specific standards, and the real question was whether it was multi-family housing, in the right sub-area, and with 20 or more units (at least 10% set aside for workforce housing). Public Testimony Neither For nor Against David Trzyzewski, 17730 Marybrook Drive, Lake Oswego, OR 97034, asked what was accomplished by the Lot Line Adjustment. Mr. Fransted stated that it was not a requirement, but an allowed proposal, and added that he understood the reason was to have the development all within one lot. Ms. Numanoglu added that the adjustment was to the west. Mr. Trzyzewksi asked if Avian Hall, the cemetery, and the undeveloped land would remain. Mr. Fransted affirmed that it would. Mr. Trzyzewski opined that the 144 parking spaces would be adequate for 100 units, also, given the additional parking available on the rest of the campus. Mr. Trzyzewski asked what the occupancy limits would be, who would own the buildings, and how long Mercy Housing would manage the property. He stated that, in theory, it was a good idea, but would depend on the management company. Applicant Rebuttal Mr. Bendix answered Mr. Trzyzewski’s questions by saying that: the Lot Line Adjustment was proposed to keep the development within one lot (in order to record restricted covenants); occupancy levels allow for 2 people per bedroom, plus 1; Mercy Housing will enter into a long- term lease with the Sisters; and the management agreement will be indefinite. Commissioner Berardi asked how the ongoing maintenance SLA would work. Mr. Bendix replied that each unit will undergo an annual inspection, and that the tenants must sign that they agree with the house rules. Mr. Boone stated that he was not aware of any criterion that addressed management, in regard to maintenance, and that how a property was managed was not a Land Use question. Deliberations Mr. Boone asked if anyone wished that the record be left open to submit additional evidence or if the Applicant wished to submit final written argument. There were no such requests, nor did the Applicant wish to submit final written argument. Mr. Boone instructed Vice Chair Arthur to proceed to deliberations. Development Review Commission Minutes February 23, 2022 Page 5 of 5 Commissioner Sangrey stated that his impression, given the testimony heard, was that this project was consistent with the requirements they would use to judge. Commissioner Poinsette noted that this sounded like a good mission for the City and for the Sisters at Marylhurst, and that he was in favor of the application. Commissioner Berardi agreed that this was a great project and that there were no issues with meeting the criteria noted by Mr. Boone. Commissioner Silen opined that the code requirements were met. Vice Chair Arthur thanked staff and the Applicant for the excellent presentation, adding that he recalled the Affordable Housing Task Force report from 2010, and that this project would meet this need. He stated that he agreed with the findings in the staff report and would be voting in favor of the application. Commissioner Berardi moved to approve LU 21-0077, as written. Seconded by Commissioner Sangrey and passed 5:0. Mr. Boone instructed staff to return the Written Findings, Conclusion, and Order on Monday, March 7, 2022, at 7:00 PM. Vice Chair Arthur closed the public hearing. SCHEDULE REVIEW AND MANAGEMENT UPDATE Ms. Numanoglu, updated DRC members on upcoming meetings: March 7, 2022 has the Findings from this meeting and a subdivision application. March 21, 2022 has a tentative appeal of an application. ADJOURNMENT Vice Chair Arthur adjourned the meeting at 8:06 PM. Respectfully submitted, /s/ Kat Kluge, Administrative Support