PLANNING AND ZONING COMMISSION Regular Meeting Tuesday, May 26, 2015

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1 PLANNING AND ZONING COMMISSION Regular Meeting Tuesday, May 26, 2015 Notice is hereby given that the Planning and Zoning Commission will hold a Regular Meeting at 7:00 p.m. on Tuesday, May 26, 2015, in the Council Chambers of Johnston City Hall, 6221 Merle Hay Road, Johnston, Iowa, to discuss the following business: AGENDA: 1. Call to Order 2. Roll Call 3. Approval of Agenda 4. Approval of Meeting Minutes: Regular Meeting of May 11, PZ Case No ; Beaver Drive Boat and RV Storage Site Plan; The applicant, 6060 NW Beaver LLC, is proposing to construct five storage buildings on lots 1 & 2 of Thielke Acres, Plat 2 to be used for boat and RV storage. The subject property is located west of NW Beaver Drive and south of NW 62 nd Avenue and is zoned M-1 Light Industrial. 6. Other Business Comprehensive Plan Amendment West of NW 100 th Street Multi-family Residential Apartment Development 7. Adjournment Next Scheduled Regular Meeting: Monday, June 8, Posted on or before May 25, 2015 at: Johnston City Hall, Johnston Public Library, Johnston Post Office, Johnston Public Works, Crown Point Community Center, and Johnston Website (

2 PLANNING & ZONING COMMISSION City of Johnston 6221 Merle Hay Road, Johnston, IA Minutes Regular Meeting: Monday, May 11, 2015 AGENDA: 1. Call to Order Petersma called the meeting to order at 7:00 p.m. 2. Roll Call Spencer Severino Johnson Smith Whitaker Petersma Anderson Present X X X X X Absent X X City Staff Present: David Wilwerding, Aaron Wolfe, Steven Witmer 3. Approval of Agenda Petersma called for a vote to approve the agenda. Spencer Severino Johnson Smith Whitaker Petersma Anderson Aye X X X X X Nay Abstain 4. Approval of Meeting Minutes: Regular Meeting of April 27, Petersma called for a vote to approve the minutes of April 27, Roll Call Vote: Spencer Severino Johnson Smith Whitaker Petersma Anderson Aye X X X X X Nay Abstain Page 1 of 5

3 5. PZ Case No ; Birchwood Crossing PUD Amendment; Consider Ordinance 928 amending the Birchwood Crossing PUD to amend allowed uses and signage in Parcel D of the PUD Master Plan. Parcel D is located north of Interstate 80/35 at the east end of Birchwood Court. David Wilwerding presented the staff report. Petersma inquired if interstate signage is required to be static text. Wilwerding noted that there are restrictions on electronic signage. Petersma inquired about a requirement for completing street connection. Wilwerding responded that a road connection has been mentioned in various site proposals over the years but has not been a requirement of approval, although traffic studies have recommended it. Severino inquired if the amendment will remain in place even if this project does not proceed. Wilwerding responded yes. Petersma suggested that the Commission may wish to designate what area of the Parcel is changed rather than change it for the entire parcel. Doug Hoth, President, Bison Corporation, Yankton, South Dakota, discussed the proposed dealership. Petersma inquired of the size of the proposed project. Hoth responded that the initial agreement is for 5 acres but with first option on additional property. The intent is to acquire the entire property over time, approximately 14 acres. Petersma opened the meeting to public comment at 7:18 p.m. Severino commented that he likes the project, just concerned about potential development if applicant s project does not proceed. Johnson inquired if there is an action the city can take to tie this action to this applicant in case there is a change. Wilwerding, not really except to be as specific as possible in the change, for example the suggested change is limited only to motorcycle establishments. Petersma opened the public hearing at 7:21 p.m. No comments received. Petersma closed the hearing at 7:22 p.m. Motion by Smith seconded by Spencer to approve PZ Case No ; Birchwood Crossing PUD Amendment. Roll Call Vote: Spencer Severino Johnson Smith Whitaker Petersma Anderson Aye X X X X X Nay Page 2 of 5

4 Abstain 6. PZ Case No ; Windsor Office Park Comprehensive Plan and Zoning Map Amendment; The applicant, Premier Development, LLC, has submitted a petition to rezone 7.92 acres consisting of Lots of Windsor Office Park Plat 1 to allow R-4 Multiple Family Residential uses with a density of up to 24 units per acre. The current PUD Zoning allows PC Professional Commerce uses with second-story residential uses. PC uses would remain as an allowed use to enable flexibility of development. The request would require amending the Johnston 2030 Comprehensive Plan use for the subject property from Office Park to High Density Residential. The subject property is located on the north side of Windsor Parkway between NW 90 th Street and NW 92 nd Court. Aaron Wolfe presented the staff report. Smith asked if the Comprehensive Plan amendment and rezoning would be two separate actions. Wolfe responded yes. Harry Wolf, managing partner, Windsor Office Park, discussed the history of the Windsor Office Park development. Fifteen years later development progress has not been robust. Periodically they have been approached by interested parties wishing to develop the subject area to multifamily residential uses. Jamie Meyers, Premier Development, rd St, Urbandale, explained that Premier is a property management company. They do frequent measurements of pricing, demand, vacancy and have found that Johnston has the largest demand and lowest vacancy rate for multi-family outside of the downtown area. This project would consist of 107 apartments with a clubhouse, pool, fitness facility, coffee bar, community room. Curtis Ehler, Studio Melee, 820 First Street, West Des Moines, discussed site characteristics and noted there is a drainage way with significant wooded areas. Tuck-under parking is proposed, this also helps the density as less area is needed to accomodate parking. Ehler presented conceptual elevation drawings. Ehler discussed comparative densities with and without tuck-under parking, to achieve same amount of parking the project would require over 10 acres of land and would have a density of just over 16 units per acre, so they feel that this project meets the intent of the R-4 density requirements but on a smaller parcel. Meyers noted that they would use existing topography with minimal land-moving. This is similar to a project constructed in West Des Moines. Petersma opened the public hearing at 7:49 p.m. Scott Wiegel, 5909 NW 92 nd Court, state his property is adjacent to this project, he strongly opposes any rezoning of this property. When he purchased the property he based his decision on the existing PUD requirements and would not have purchased the home if it had been adjacent to apartments. It does not make sense to have apartments on an already very busy road with two schools on it. He has noise, light and privacy concerns. The petition shows the community does not support this. Changing this tells other property owners that the Comprehensive Plan is no protection, also sets precedent to allow additional apartments in the Page 3 of 5

5 area. Wiegel noted that the Commission voted against a similar project in Beaver Business Park. Terry Holmgren, 9320 NW 62 nd Avenue, spoke in opposition to the project and does not think this is an appropriate transition. Holmgren expressed concern about drainage, her property has already experienced erosion damage. Stephen Thomasee, 5913 NW 92 nd Court, noted that a petition has submitted and residentshave gathered additional signatures and would like to submit them. Stephen De Cook, 8950 NW 62 nd Avenue, expressed opposition to the proposal. His previous employment was strategic level planning in the military. The city has a long-range plan and should carry it out as written. Agrees that the applicants have a beautiful design but this is the wrong location for it. Missy Winterboer, 9508 Twin Eagles Drive, noted that Summit and Horizon Schools are just down the road on Windsor Drive, the intersections are blocked with parents dropping off and picking up students, and there are many neighborhood children walking to school. She is concerned about traffic and safety impacts. Petersma closed the public hearing at 8:01 p.m. Curtis explained the proposed detention areas and noted that Johnston has very strict stormwater requirements. These will need to be engineered and sized to make them work in the site planning process. Meyers, this particular site is already approved for mixed use that would allow dwelling units now, this would just be a request to use that first floor as residential as well instead of office use. Typically in most planning you transition from single family to multi-family to office or commercial, this would accomplish that transition. Feels Foth traffic study underestimates the traffic of an office use. Thomasee commented that the applicants are proposing to do more than just making first floor residential, the proposed apartments would include a third story. Wilwerding noted that there are provisions in City Code that allow owners to petition to change zoning and also allows owners to petition to oppose rezoning. Wilwerding provided a graphic showing where signers of the opposition petition are located and noted that the map does not include the new signatures presented at the meeting. Wilwerding discussed rezoning petition requirements and noted there are conditions that would require a supermajority of the Council to approve. The current petitions include 11% of the land area owners within 250 feet opposed, with 50% signing in support. Smith commented that it is a great plan, it seems like many apartment projects have been coming to the city and she sympathizes with the owner that the property has not developed as quickly as hoped. However as a member of the body that created the Comprehensive Plan she feels strongly that it should not be changed at this time. Spencer commented that the Comprehensive Plan is to map out the city s future, he was not part of the Commission when the current plan was created but knows the work that went into crafting it. Page 4 of 5

6 Johnson commented that the city does need economic activity but leans to maintaining the current Comprehensive Plan, he agrees it is an interesting plan but the timing is not right, if the request came at a later time he might approve. Severino agreed, the city does not have a flourishing business park on the west side and does not wish to give up hope on that yet. Petersma agreed that it is a unique design, but the Comprehensive Plan should remain as is. This project would fit much better south of Crescent Chase Apartments. Bill Bartine, Belin McCormick Law Firm, 666 Walnut Street, Des Moines, commented that he has had three clients come to him looking for multi-family projects in the NW 86 th Street corridor. The market is not favorable for commercial right now but right now it is for multifamily residential. Wilwerding noted that the first item considered needs to be for amending the Comprehensive Plan. Petersma inquired about the effect on the process if a motion is made to approve the request but fails to pass. Wilwerding responded that procedurally it s the same as a denial, it s just the semantics of how it is described to the City Council. Petersma commented that market trends are cyclical, communities are more permanent, while there might not be a market right now for commercial development there has been an increase in activity in the corridor. A community that is all rooftops but no commercial struggles to succeed, residential property taxes alone don t pay the bills. Residents need businesses and businesses need residents. The Comprehensive Plan is a long-range plan. Motion by Smith seconded by Severino to deny PZ Case No ; Windsor Office Park Comprehensive Plan Amendment. Roll Call Vote: Spencer Severino Johnson Smith Whitaker Petersma Anderson Aye X X X X X Nay Abstain 7. Other Business Wilwerding noted the next meeting date will be on Tuesday, May 26 th due to Memorial Day. 8. Adjournment. Meeting adjourned at 8:29 p.m. Chair Secretary Page 5 of 5

7 Planning & Zoning Commission COMMUNITY DEVELOPMENT DEPARTMENT May 26 th, 2015 Meeting PZ Case No SUBJECT: Consider recommending approval of PZ Case 15-14; the site plan for Beaver Drive Boat and RV Storage. SYNOPSIS: RECOMMENDATION: 6060 NW Beaver, LLC has submitted a site plan depicting five storage buildings to be constructed over lots 1 & 2 of Thieleke Acres Plat 2 to be utilized for boat and RV storage. The site is located west of NW Beaver Drive and south of NW 62 nd Ave. Staff recommends approval of P&Z Case No , Beaver Drive Boat and RV Storage Site Plan with the following conditions: 1. The project shall conform to the requirements, standards and regulations of the City of Johnston. 2. Applicant must procure a City grading permit and an Iowa DNR NPDES Phase 2 permit, including a SWPPP for this site prior to any ground disturbing activity. 3. If site lighting is proposed, applicant must submit a photometric layout and manufacturer s cut sheets in compliance with Resolution Applicant submittal of building elevations indicating building height, and type and percentage of each building material proposed for proposed storage buildings. 5. The total site area must be re-platted under the confines of one legally platted lot or applicant must submit a recorded lot-tie agreement irrevocably stipulating no separation of lots 1 and 2 for purposes of sale or transfer without further action by the Johnston City Council. 6. If site lighting is proposed in the future, the applicant must submit manufacturer s cut sheets and a photometric plan in compliance with Resolution subject to staff approval prior to installation of lighting. 7. Elevation drawings for the proposed future building must be submitted for review and approval of the Planning Commission and City Council prior to issuance of a building permit. 8. Applicant submittal of a recorded stormwater maintenance H:\Community Development\P&Z\2015 PZ\PZ 15-14; Beaver Drive Boat and RV Storage Site Plan Page 1 of 7

8 management agreement for proposed stormwater management facilities. Prior to issuance of a building permit, the site plans must be revised to address the following: 9. Comments 1-6 from review letter provided by consulting engineer Foth Infrastructure and Environment dated May 22, Motion by, seconded by to recommend approval of PZ Case No the Beaver Drive Boat and RV Storage Site Plans. Attachments: Site plans by Snyder and Associates dated 5/13/15; Development Review comments provided by staff dated 4/22/2015; Development Review comments by consulting engineer Foth Infrastructure and Environment, LLC dated 5/22/15; Photos of typical elevations provided by applicant; Vicinity Map. H:\Community Development\P&Z\2015 PZ\PZ 15-14; Beaver Drive Boat and RV Storage Site Plan Page 2 of 7

9 PROPERTY OWNER: CONSULTANT: BACKGROUND & PRIOR APPROVALS: 6060 NW Beaver, LLC NW Beaver Drive Johnston, IA Chad Ireland (515) Brent Culp Snyder & Associates, Inc SW Snyder Blvd. Ankeny, IA PZ Case involved construction of the Waters Edge Marine facility which was approved on Applicant then applied to modify the plan on which was approved on The Final Plat of Thieleke Acres was approved by the Johnston City Council on February 7, 2000 via Resolution PZ Case addressed the buffer along the west side of the Waters Edge Marine site. Reference the discussion under Buffer for additional information. PZ Case approved the preliminary and final plat for Thieleke Acres, Plat 2, subdividing acres into two industrial lots via resolution ZONING & BULK REQUIREMENTS: The site is zoned M-1, Light Industrial with the following bulk requirements: Front yard = 50 Rear Yard = 50 Side Yard = 10 Side Yard Sum = 20 * A thirty (30) foot side yard shall be maintained when abutting an R District. Maximum building height (principal structure) = 50 Minimum lot area (20,000 sq. ft.) and lot width (100 ) The site is not in compliance. The 12,240 s.f. storage building is depicted over the top of the shared property line. As such, it does not meet the side yard setback requirements of the district. Staff recommends a condition of approval requiring the total site area be re-platted under the confines of one legally platted lot or applicant must submit a recorded lot-tie agreement irrevocably stipulating no separation of lots 1 and 2 for purposes of sale or transfer without H:\Community Development\P&Z\2015 PZ\PZ 15-14; Beaver Drive Boat and RV Storage Site Plan Page 3 of 7

10 further action by the Johnston City Council. TRAFFIC ACCESS & CIRCULATION: PARKING: The site is served by two access points from NW Beaver Drive, one access at the north property line of lot 2 and a second at the south property line of lot 2. The north access (Waters Edge Drive) is serves both lots 1 and 2 via access easement. The off street parking space requirements of Ch of the Code of Ordinances requires one parking space per 2000 s.f. of gross floor area for wholesale establishments or warehousing uses. The existing building on Lot 1 is 8050 s.f.; Therefore, the parking requirement for the existing building follows: 8050 s.f./2000 s.f. = 5 spaces required. The existing building on Lot 2 is 9050 s.f.; Therefore, the parking requirement for the existing building follows: 9050 s.f./2000 s.f.= 5 spaces required. The proposed building on Lot 2 is 3360 s.f.; Therefore, the parking requirement for the existing building follows: 3360 s.f./2000 s.f = 2 spaces required. The required number of spaces is 12. The site plans indicate 33 spaces on Lot 2, 11 of which are labeled future spaces. Other site conditions require use of a lot tie agreement (see Zoning and Bulk Requirements). Said lot tie would allow for parking on lot 2 to satisfy the requirements of lot 1. SIDEWALKS: UTILITIES: There is an existing sidewalk along the east side of the property on NW Beaver Drive. No other sidewalk construction is proposed at this time. Water: There is an existing 12-inch water main on the west side of NW Beaver Drive. A service line extends off of this main to serve the existing structure on Lot 2. Lot 1 is served by a private water main extended through Johnston Industrial Park. This main is located within a Access and Utility Easement. Sanitary Sewer: an existing 8-inch service line is shown from the existing 21-inch sanitary sewer main, which is located at the east side of NW Beaver Drive. Storm Sewer: The existing developed portion of the site drains H:\Community Development\P&Z\2015 PZ\PZ 15-14; Beaver Drive Boat and RV Storage Site Plan Page 4 of 7

11 overland to an existing basin adjacent to NW Beaver Drive. Stormwater generated by the improved portion of the site will be collected by surface intakes and directed through storm sewer pipe to a proposed basin at the SW corner of the property. FIRE PROTECTION: The site has been reconfigured to maintain the building under the sprinkler requirement threshold of 15,000 SF for the storage buildings. The building indicated as future on the site plans is not of sufficient size to require sprinkling. OPEN SPACE: The minimum open space required in the M-1 District is 20%. The total site area is acres (324,933 sq. ft.). The required amount of open space is calculated as follows: (324,933 sq. ft.) x (.20) = 64,987 sq. ft The site plan is in compliance with 122,990 sq. ft. of open space. LANDSCAPING: The site is in compliance with the open space landscaping requirements of city code found in Chapter (3), calculated as follows: A. Minimum requirements at the time of planting two (2) trees or one tree of the following size per 1,500 square feet of open space, whichever is greater: 40 %, 2-2½ inches Caliper Diameter 60%, 8-10 feet in height (Evergreen trees shall not be less than six (6) feet in height) B. Minimum requirements at the time of planting - 6 shrubs, or 1 shrub per 1,000 square feet of open space, whichever is greater. (64,987 open space required/1500 SF) = 44 trees required, 18 of which must be 2 to 2.5 caliper and the remainder must be 8 to 10 in height. The site plan exhibits the correct number and size of trees. (64,987/ 1500 SF) = 65 shrubs required; 66 shrubs provided. BUFFERS: The existing site is in compliance with buffer requirements and no change is proposed. A 60-foot wide buffer is required between the M-1 District and the R-1 Residential District adjacent and west of this site. When Pinewood Glen townhomes to the west were platted in 2002, the property owners received approval of an alternative buffer that consists of 30 foot landscape buffer on the townhome properties an 8 H:\Community Development\P&Z\2015 PZ\PZ 15-14; Beaver Drive Boat and RV Storage Site Plan Page 5 of 7

12 foot privacy fence on the property line and a 15 foot buffer on this plat that would prohibit structures and outdoor storage. A 15 foot buffer easement is shown on the plat to satisfy the requirements of the 2002 agreement. The Pinewood Glen Plat included a 30-foot buffer easement. 15-foot buffer provided from adjacent property along south property line (High Meadows Bluff). SITE LIGHTING: STORMWATER MANAGEMENT: No additional site lighting is indicated on the site plans. If site lighting is proposed in the future, the applicant must submit manufacturer s cut sheets and a photometric plan in compliance with Resolution subject to staff approval prior to installation of lighting. Approximately 1/3 of the site (that portion to be developed) drains to the south. The remainder drains easterly towards NW Beaver Drive. Stormwater generated from the proposed site improvements will be directed via storm sewer to a basin at the southwest corner of Lot 2. The basin outlets to existing 10 storm sewer that lies within an easement at the south end of Lot 2. Said basin will meet the stormwater quality and 100-year detention requirements on its own. An additional basin is depicted at the front of the property adjacent to NW Beaver Drive. Said basin is existing, and minor improvements are proposed to rectify existing drainage issues affecting the basin. The site plans indicate connections to existing stormwater intakes at NW Beaver Drive. Staff recommends a condition of approval requiring applicant submittal of a stormwater management maintenance agreement prior to issuance of a building permit. ARCHITECTURE: The applicant has submitted photos depicting typical construction of each of the proposed storage buildings. Staff recommends a condition for approval requiring applicant to furnish elevations for each building side indicating total building height, and type and percentage of each building material proposed prior to issuance of a building permit. No elevations were provided for the future building depicted on the site plans. The applicant has requested approval of site plans pending subsequent submittal of said elevations for review and approval by P&Z and Council. Staff recommends a condition for approval requiring such a submittal prior to issuance of a building permit for said building. CONSULTANT COMMENTS: The site plan has been reviewed by Foth Infrastructure and Environment, LLC. Foth provides comments in their review letter H:\Community Development\P&Z\2015 PZ\PZ 15-14; Beaver Drive Boat and RV Storage Site Plan Page 6 of 7

13 dated 5/22/15. Any outstanding issues are noted as a condition of the approval of the site plan. ADJACENT NEIGHBOR COMMENTS: A notice post card has been sent to all properties surrounding the current building area. A copy of the notice is attached. In addition, staff has implemented a new Notice of Proposed Development section on the City website, and post card notices are directed to this site. A copy of the material posted on the website is also attached. No comments have been received to date. H:\Community Development\P&Z\2015 PZ\PZ 15-14; Beaver Drive Boat and RV Storage Site Plan Page 7 of 7

14 PZ Case Beaver Drive Boat and RV Storage Site Plan VICINITY MAP Project Location ) NW Beaver Dr NW 62ND AVE Subject Property - 0 4,850 9,700 19,400 1 inch = 333 feet 29,100 38,800 Feet Created by City of Johnston Department of Community Development 6221 Merle Hay Road, P.O. Box 410, Johnston, IA, (515) Fax:(515) H:\Community Development\P&Z\2015 PZ\PZ 15-14; Beaver Drive Boat and RV Storage\vicinity map.mxd

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25 May 22, 2015 Aaron Wolfe Senior Planner City of Johnston P.O. Box Merle Hay Road Johnston, IA RE: Beaver Drive Boat & RV Storage Development Review No. 2 Case No. PZ Foth Infrastructure and Environment, LLC has completed a review of Site Plans and Storm Water Management Report dated May 13, 2015 for the above referenced project. Based on our review of project reference above, the following comments are offered: Storm Water Management Plan 1. Applicant shall provide the 100-year storm sewer and intake design summaries. 2. According to the Storm Sewer design P-7&8 are to be 12 RCP, but on the site plans they are listed as 15 RCP. 3. According to the Storm sewer design, P-16 needs to be a 12 PVC while site plans show it at an According to the Storm sewer Design, P-17 & 18 need to have a slope of 0.75%, but on the site plans they are listed as 0.5%; 5. According to the model a 6 orifice in a vertical orientation is being proposed while site plans state 6 in the horizontal orientation will be installed; applicant shall update accordingly to ensure allowable release rate is not exceeded. 6. Applicant shall provide documentation verifying the proposed erosion control measures at pipe outlets; comment letter stated it was included, but unable to verify the TRM size. Site Plans 7. No further comments. Please contact me at if you have questions or comments. Sincerely, Foth Infrastructure & Environment, LLC Joshua C. DeBower Project Civil Engineer jcd:mms Birchwood Court, Suite L Johnston, IA (515) Fax: (515)

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29 DATE: May 22, 2015 TO: FROM: RE: Planning and Zoning Commission David R. Wilwerding, AICP Community Development Director Comprehensive Plan Amendment West of NW 100 th Street Over the last few months, City Staff has been meeting with representatives of the Bright Foundation who own approximately 125 acres west of NW 100 th Street and south of NW 70 th Avenue to acquire right of way for the NW 100 th Street and NW 70 th Avenue improvement projects. As part of the discussions the Foundation requested that the City amend the Comprehensive Plan for the area (see attached Exhibit). In reviewing the Foundation s request, it is apparent that a larger review of land uses is necessary in the area to better reflect the new Johnston High School being constructed immediately south of the Foundation parcel. Attached for review is the current Land Use Map from the Johnston 2030 Comprehensive Plan, included on the map in lighter tone is the current City of Grimes Comprehensive Plan land use map. Staff would like to have a discussion with the Commission on the best approaches to review and consider changes to the Comprehensive Plan land use map for this area.

30 OFFICE OFFICE FULL ACCESS SE DESTINATION DRIVE NW 70TH AVENUE COMMERCIAL RI/RO COMMERCIAL 9.5 AC. COMMERCIAL COMMERCIAL 16.4 AC. RI/RO COMMERCIAL 16.7 AC. COMMERCIAL RI/RO SE 4TH ST. Q:\A-FILES\A-1600\A1669\dwg\A1669 land use exhibit dwg, 3/27/2015 2:27:30 PM, mmorgan, 1:1 COMMERCIAL HIGH DENSITY RESIDENTIAL 16.0 AC. HIGH DENSITY RESIDENTIAL 17.4 AC. MEDIUM DENSITY RESIDENTIAL 17.1 AC. HIGH DENSITY RESIDENTIAL 9.5 AC. MEDIUM DENSITY RESIDENTIAL 9.2 AC. NW 100TH STREET FULL ACCESS NW 68TH AVENUE HIGH DENSITY RESIDENTIAL SE 11TH ST. PROPOSED JOHNSTON HIGH SCHOOL AMENDMENT TO LAND USE PLAN EXHIBIT 'D' NORTH Civil Engineering Consultants, Inc th Street. Unit 12. Des Moines, Iowa Fax:

31 Grimes and Johnston Land Use NW 70th AVE Legend Johnston Land Use Low Density Residential Medium Density Residential High Density Residential Neighborhood Mixed Use Commercial Business Park Parks & Open Space Public Quasi-Public Open Water Office NW 106th NW 100th Grimes Land Use Medium Density Residential High Density Residential Mixed Use Commercial Light Industrial Greenway/Preserve Civic Public Facility NW 62nd AVE Miles ±

32 DATE: May 15, 2015 TO: FROM: RE: Mayor, City Council and Planning and Zoning Commission David R. Wilwerding, AICP Community Development Director Multi-Family Residential Apartment Development The Planning and Zoning Commission recently asked staff to explore multi-family housing in Johnston. Specifically, the question has been raised as to whether the market is saturated or if there is a need for additional multi-family residential apartments. This memo is provided as a mechanism to provide information on the multi-family markets, industry trends and a summary of approved projects as a way to facilitate discussion on the topic. Within this memo, staff is not making any recommendations surrounding the demand/saturation or approval/denial of any pending or future multifamily housing developments in Johnston. Trends and Statistics Today s trends show that the need for apartments and condominiums are in high demand. Nationally, the largest percentage of our population is currently the Millennials, those aged 16-34, who have the desire to rent and live in walkable, urban areas, followed closely by the baby boomers (those born between 1946 and 1964) who are aging, and in the future will continue to downsize to apartment/condominium living style. Combined, these two groups currently make up 48% of the US population. Source:

33 Arthur Chris Nelson, director of the Metropolitan Research Center at the University of Utah states, Between 2010 and 2030, half of all new housing will be built for renters, the net new demand will be for rental housing. We are not going to build apartments fast enough to meet demand. As well, Sara Wiskerchen from the National Association of Realtors said that, With millennials searching for new homes, baby boomers downsizing, and groups with historically lower incomes all entering the market, an increased demand for smaller, less expensive homes will begin to emerge." Locally, the Polk County Housing Trust Fund, as an offshoot of the Tomorrow Plan, created a report called Housing Tomorrow which describes future demographic projections, and how that will affect the Greater Des Moines Area and housing, noting that greater Des Moines will be older and more racially and ethnically diverse that ever before. The report gives specific statistics such as: The metro population increasing 56% by 2050, adding 266,115 residents; 1 in 5 residents will be 65 or older; Greater Des Moines s fastest-growing job creating industries are customer service representatives, food service workers and retail salespersons with average annual salary ranges between $19,740 and $35,160; and In a statistically valid survey 64% of Greater Des Moines residents believe housing is unaffordable to the area workforce, and we will need more affordable housing. Despite the perception that affordable housing is rent assisted or government subsidized, the U.S Department of Housing and Urban Development, defines affordable housing as follows: The monthly rent or mortgage payment and utilities of an affordable home should cost a household no more than 30% of their gross monthly income. Based on this definition, Housing Tomorrow indicates that 60,000 households in the area are living in unaffordable housing. Along with housing being unaffordable, the average Greater Des Moines household size is getting smaller. By 2050 the number of 1-person households will more than double from 52,094 to around 130,434. Thus, there will continue to be a shift in housing types and needs to support the areas workforce. A copy of the Housing Tomorrow Executive Summary is attached to this memo and a full version of the report is available at

34 Des Moines Metro Apartment Survey CBRE Hubbell Commercial annually conducts a survey of Des Moines Area Apartments. This survey breaks down the Des Moines Metro into subsections of East, South, West, West Suburbs, Central Business District or CBD. The study depicts the current and historic vacancy percentages, average rent prices and pending apartment project. For the purposes of this survey, Johnston is located in the West Suburbs. According to the survey, the West Suburbs vacancy rate in 2015 is only 4%, compared to 8.6% in Additionally, rents in the Western Suburbs are the highest in the metro with the exception of the central business district of Des Moines. Across the metro, vacancy rates are at their lowest points since the late 1990 s. Following the traditional supply and demand model, it is to be expected that the market is currently adjusting the supply of apartments to meet the demand. A copy of the CBRE Hubbell Commercial Apartment Study is attached to this memo. Renter Occupied Versus Owner Occupied Units The US Census Bureau does not provide statistics on the number of apartment or multi-family residential units, but does provide statistics on owner occupied versus renter occupied housing units. While multi-family residential units can be owner occupied (condos) and single family detached homes can be renter occupied, this is the best data available to track historic trends and compare data across communities. The table below shows a breakdown of the Des Moines Metro Area s housing characteristics collected during the 2010 US Census.

35 In 2010, the percentage of owner occupied in Johnston was 77.8 with 22.2 percent renter occupied, with the metro average of 76.9 and 23.1 percent respectively. West Des Moines had the highest percentage of renter occupied units at 37.8 percent and Grimes had the lowest at 15.4%. By comparison, in 2000, Johnston had 2,410 or 74% owner occupied and 847 or 26% renter occupied units. The table below depicts the single family, townhome and apartment units constructed since In total, 534 multi-family units, 130 townhomes and 569 single family detached homes have been constructed between 2010 and Assuming all multifamily units are renter occupied and all townhomes and single family detached homes are owner occupied, as of 2014 Johnston would have 1,950 renter occupied units and 5,652 owner occupied units. Based upon those assumptions, the renter occupied units would equate to 25.7% with 74.3% owner occupied. Apartment Development in Johnston To provide an overview of the location and density of apartments across Johnston, the attached map was prepared which depicts each the P&Z case number, name of the development, the development status (completed or not), the number of units, and the density.

36 Conclusions As noted, this memo has been prepared as a means to provide the Council and Planning and Zoning Commission data and trends surrounding multi-family residential apartments, not as support or opposition for any future projects. Based on the information noted in this memo staff would note the following items: Locally and nationally shifting demographics point to the need for affordable housing choices beyond single family detached units. Based upon the current vacancy and rental rates, the development community is currently responding to the increased demand for multi-family residential housing. While there have been peaks in multi-family residential apartment construction in Johnston, over the past 15 years or so the percentage of owner versus renter occupied units has remained relatively consistent. Staff welcomes the opportunity to provide additional information or data on this subject as requested by the Planning and Zoning Commission or City Council.

37 To read the full report, visit housingtomorrow.org EXECUTIVE SUMMARY Why does this matter? Housing is a human right, and a fundamental human need. Experts from various fields recognize that safe, stable, and affordable housing is essential to our region s health, education, and economic development. That s why Housing Tomorrow is so important. Housing Tomorrow is Central Iowa s first-ever regional plan for affordable housing. As such, it offers strategies to ensure that all Central Iowans have access to safe, stable, and affordable housing options now and in generations to come. Where will we live in 2050? Housing Tomorrow comes at a vital time in the development of our region. Our thriving economy is driving unprecedented population growth that will continue in the coming decades. And we re not just growing; we re also changing. Tomorrow s Greater Des Moines will be older and more racially and ethnically diverse than ever. We will also need to accommodate a rapidly growing service workforce. Our fastest-growing industries are creating jobs that cannot support even a basic standard of living, currently estimated at $21,000 for a single adult and $57,000 for a family of four. Our community s needs are pressing, but it s not too late for change. Anticipating these needs, this plan offers a roadmap forward to a brighter tomorrow for everyone in our region. Projected Regional Growth 750,000 people 480,000 people in 5 area residents will be 65 or older by 2050 Fastest Growing Jobs in Greater Des Moines 266,115 new residents (á56%) 2050 customer service reps $ 35,160 average local salary food service workers $ 19,740 average local salary retail salespersons $ 27,850 average local salary

38 6Principles of HOUSING TOMORROW 1 Our region will offer a variety of housing choices for our diverse population. 4 Our region will collaborate across sectors to address the impact of housing on community health and prosperity. STRATEGIES l Use flexible zoning practices to encourage diverse housing types. l Consider the impact of subdivision regulations on housing cost. 100% 136,906 52, , ,434 Greater Des Moines households are getting smaller 2+ person households 1 person households STRATEGIES l Engage partners from all constituencies in providing affordable housing. l Identify community assets and employ them in comprehensive approaches to housing issues Our region will preserve, maintain, and improve its existing housing inventory. 5 Our region will seek new resources for housing, and use existing resources responsibly. STRATEGIES l Connect property owners to home repair resources. l Prevent the displacement of residents in changing neighborhoods. 53% Percentage of Greater Des Moines residents who reported household hazards in need of repair or modification STRATEGIES l Reduce cost barriers to the development of affordable housing. l Create regional funding sources for housing. $ 177,485 22% From Average per-unit cost of developing an affordable unit 3 Our region will make strategic decisions about the location of new housing. 6 Our region will foster a dynamic community dialogue about housing. STRATEGIES l Encourage the distribution of affordable housing options throughout the metropolitan area. l Build and preserve affordable housing in close proximity to jobs, transit, and services. Percentage of total area jobs paying > $ 15K a year located outside the City of Des Moines STRATEGIES l Design and implement a marketing campaign that compels the general community to advocate for housing. 60% 64% l Use community engagement strategies to empower and inform populations impacted by housing issues. Percentage of Greater Des Moines residents who believe housing is unaffordable to area workforce

39 What is affordable housing? According to the U.S. Department of Housing and Urban Development, the monthly rent or mortgage payment and utilities of an affordable home should cost a household no more than 30% of their gross monthly income. If a household is spending more than this amount, they are living in an unaffordable unit. This definition can be applied to anyone s household, from CEOs to cashiers. Over 60,000 households in our area are living in unaffordable housing. However, government funding for affordable housing generally targets units for households earning less than 80% of Area Median Income (AMI). In 2015, 80% AMI for a single person in the Des Moines area is $42,000 annually. For a family of four, the number is $60,000. What is The Tomorrow Plan? Housing Tomorrow was born out of and named for The Tomorrow Plan, a document that looks forward to a greener Greater Des Moines in The product of a three-year planning process and a grant from the U.S. Department of Housing and Urban Development, TTP seeks to achieve social, economic, and environmental resilience for our region. What should I do to help? Whether you are a concerned citizen or an elected official, a business owner or a developer, you have the power to create change in your community. concerned citizen Plan out your housing journey for the next 20 years. Does our region have what you want at prices you can afford? business leader Advocate for diverse housing near your office to meet the needs of your employees. elected official Review your city s zoning and subdivision regulations to consider their impact on cost. housing developer Explore building new housing types, and in sites near transit and services. community ally Consider how housing impacts your organization s mission and vision, no matter what field you work in. Affordable homes in Greater Des Moines from top: HOME, Inc. green home in West Des Moines, Hatch Development s Des Moines Greystones, Hubbell s Court Avenue Lofts No matter who you are, talk to your local leaders. Tell them about the policies you want to see in your community. Together, we can ensure that every Central Iowan has a safe, stable, and affordable home for years to come. Housing Tomorrow is made possible by these sponsors:

40 Des Moines Metro APARTMENT SURVEY 2015 Prepared by Commercial Appraisers of Iowa, Inc.

41 Introduction This annual survey of apartments in the Des Moines Metropolitan Area includes both conventional apartments and tax credit projects. The survey has been completed to assist in the decision-making process of developers, property owners, brokers, investors, managers, assessors, and other market participants regarding multiple family properties. Methodology This 45th Annual Apartment Survey includes 24,092 conventional apartment units located in 281 projects and 3,493 Section 42 Low Income Housing Tax Credit units in 54 projects. Conducted during January of 2015, the survey covers both high-rise and garden style apartments. Occupancy and rental data was collected by a mailed survey questionnaire or phone interview with owners and managers of each project. For purposes of this study, the Greater Des Moines Metropolitan Area is geographically divided into the following areas: 2 Des Moines Metro real estate APARTMENT survey 2015 The apartments cover a wide range of amenities and units per complex, ranging from 8 to 450 units generally built after The survey does not include senior housing, student housing, or projects with rental amenities such as meals. A separate study for tax credit projects is included later in this report. The survey includes only the units available for rent as of January This survey does not include units under construction as of the survey date. Although the method of survey and occupancy data reports are considered valid and reliable, they are not guaranteed of being free of error, statistically or otherwise. In our opinion, this survey is an objective picture of the occupancy and rental situation at this time. Reproduction of this information is permitted with acknowledgement to Commercial Appraisers of Iowa, Inc. and CBRE Hubbell Commercial. 1. east All east and north of the Des Moines River, except CBD 2. south All south of the Raccoon and Des Moines Rivers including Norwalk 3. cbd Central Business District south of I-235, east of Martin Luther King Parkway, north of Raccoon River including East Village to the State Capitol 4. West All west of the Des Moines River, north of the Raccoon River, except CBD 5. West Suburbs Clive, Urbandale, Windsor Heights, West Des Moines, Grimes, Waukee and Johnston

42 Historical Des Moines metropolitan apartment vacancy rates Submarket Units East 1, % 3.2% 4.7% 5.7% 7.4% 6.1% 8.1% 6.3% 6.8% 6.3% 4.0% 12.9% South 4, % 6.7% 4.6% 7.0% 7.9% 8.7% 8.3% 12.6% 9.7% 8.4% 12.0% 8.6% West 2, % 4.1% 3.5% 4.6% 4.9% 7.1% 6.7% 6.7% 7.7% 5.7% 7.5% 9.3% CBD 1, % 2.0% 2.7% 2.1% 5.9% 5.0% 5.2% 4.7% West Suburbs 11, % 4.7% 4.4% 5.1% 4.9% 8.6% 6.8% 8.7% 8.9% 9.6% 9.4% 10.0% Subtotal/Average Greater Des Moines 21, % 4.7% 4.2% 5.3% 5.8% 8.0% 7.1% 9.1% 8.6% 8.3% 9.3% 9.8% Altoona % 2.1% 1.7% 2.8% 3.5% 5.1% 2.5% 1.7% 5.6% 6.8% 10.5% 10.7% Ankeny 1, % 3.9% 5.1% 4.6% 3.5% 9.0% 7.7% 4.8% 5.4% 7.2% 8.0% 7.1% Indianola % 4.9% 4.8% 9.0% 2.3% 9.0% 5.6% 7.8% 3.1% 6.0% 11.5% 6.4% Total/Average of All Units Surveyed 24, % 4.6% 4.2% 5.3% 5.5% 8.0% 7.0% 8.5% 8.1% 8.1% 9.2% 9.5% Historical des moines metropolitan apartment vacancy rates 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Des Moines Metro real estate APARTMENT survey

43 Vacancy by unit type and geographic area Submarket Efficiency 1-Bedroom 2-Bedroom 3-Bedroom Total East 5.9% 4.7% 4.1% 3.8% 4.4% South 0.0% 3.4% 5.6% 3.6% 4.8% West 2.4% 2.2% 4.2% 1.9% 3.4% CBD 0.7% 3.0% 2.4% 0.0% 2.3% West Suburbs 5.4% 3.8% 3.7% 5.9% 4.0% Altoona 0.0% 4.7% 3.3% 3.0% 3.6% Ankeny 0.0% 4.0% 5.2% 7.3% 4.9% Indianola 0.0% 8.1% 3.9% 12.5% 4.3% Average of All Units Surveyed 3.1% 3.6% 4.2% 5.2% 4.1% Average rent by unit type and geographic area Submarket Efficiency 1-Bedroom 2-Bedroom 3-Bedroom East $448 $577 $730 $1,000 South $506 $607 $698 $881 West $521 $633 $739 $1,101 CBD $726 $851 $1,047 $1,732 West Suburbs $704 $768 $841 $1,051 Average Greater Des Moines $646 $713 $796 $1,044 Altoona $483 $627 $723 $960 Ankeny $500 $726 $857 $1,198 Indianola $517 $519 $647 $665 Average of All Units Surveyed $642 $711 $793 $1,049 4 Des Moines Metro real estate APARTMENT survey 2015

44 rental rate comparison EFFICIENCY 1-BEDROOM 2-BEDROOM 3-BEDROOM Submarket % Change % Change % Change % Change % Change % Change % Change % Change East 2.9% -2.6% 3.0% 4.5% 3.6% 6.4% % South 10.8% -11.8% 1.4% 2.0% 3.2% 3.7% 2.3% 4.6% West 2.4% 3.4% 1.8% 3.8% 1.6% 3.1% 8.7% -3.9% CBD 0.9% 4.3% 4.5% 1.1% 10.1% -4.3% 12.1% 45.4% West Suburbs 2.9% -0.6% 1.7% 1.6% 2.1% 1.3% 4.8% 0.2% Average Greater Des Moines 5.2% 5.7% 2.0% 2.1% 2.4% 1.9% 5.8% 1.0% Altoona 1.8% 5.0% 3.0% 6.6% 3.6% 5.2% 1.7% 8.4% Ankeny N/A N/A 15.2% 3.3% 11.8% -1.9% 0.3% 2.3% Indianola 2.9% 4.4% 1.7% -3.5% 3.0% -1.4% 3.0% 3.3% Average of All Units Surveyed 5.4% 5.6% 3.0% 2.4% 3.0% 1.5% 5.8% 0.9% Rental Rate Comparison Rents have increased for all unit types over the past year. The increase in average rents ranged from 0.9% for three-bedroom units to 5.6% for efficiency units. The rents included in our past five annual surveys have been adjusted for any rent concessions offered, such as a free garage or rent, to arrive at an effective rent. Prior to 2010, the rents included in the survey were not adjusted for concessions. Approximately 7% of the market rate projects offered some type of rental concessions to new tenants, which is a decrease from approximately 9% in the prior year. HISTORICAL AVERAGE RENTS BY UNIT TYPE $1,100 $1,050 $1,000 $950 $900 $850 $800 $750 $700 $650 $600 $550 $500 $450 $ Eff GDM 1-BR GDM 2-BR GDM 3-BR GDM Des Moines Metro real estate APARTMENT survey

45 LOW INCOME HOUSING TAX CREDIT PROJECTS VACANCY RATE % 3.0% 2.2% 4.6% 4.4% 2015 VACANCY BY UNIT TYPE ON 3,493 UNITS Total Efficiency 1-Bedroom 2-Bedroom 3-Bedroom 2.0% 0.0% 1.8% 1.7% 3.5% 2015 AVERAGE RENT BY UNIT TYPE % RENTAL RATE CHANGE Efficiency 1-Bedroom 2-Bedroom 3-Bedroom $516 $632 $729 $851 Efficiency 1-Bedroom 2-Bedroom 3-Bedroom % -0.6% 2.0% 2.5% % 7.8% 4.1% 2.7% Approximately 4% of the tax credit projects that responded provided rental concessions in the form of free rent, compared to 2% in Tax Credit Development Section 42 of the Internal Revenue Service Code provides for tax credits to developers of rental housing for low income tenants. The Iowa Finance Authority administers a program involving low income tax credits under which many apartments have been built or rehabbed in recent years. Since these projects have rent restrictions, they are not included in the market rate survey previously described in this report. We surveyed 54 tax credit projects containing a total of 3,493 units within the Des Moines Metropolitan Area. The average vacancy rate is 2.0%, which is a decrease from 3.0% vacancy last year. Summary The survey indicates rental rate increases for all market rate unit types ranging from 0.9% to 5.6% during the past year. The substantial increase in market rent for three-bedroom units in the CBD submarket can be attributed to several high end units being added to a relatively small amount of total units surveyed. Overall vacancy rate for conventional apartments of 4.1% is a decrease from 4.6% in The highest vacancy rates by geographic area are 4.8% for the South submarket and 4.9% for Ankeny. The South submarket showed the greatest improvement, with vacancy reduced from 6.7% to 4.8%. The vacancy rate for the tax credit projects decreased to 2.0% from 3.0% the prior year. The West Suburbs and the new units added to the Central Business District have the highest average rents. The lowest average monthly rental rates tend to be in the South, East, Altoona, and Indianola submarkets. Approximately 2,137 new rental apartment units of a planned 2,943 apartment units (not including senior housing and some for-sale condominiums) were added to the rental market in 2014, versus 931 units in Of these, 2,000 are market rent apartments and 137 are tax credit units. 6 Des Moines Metro real estate APARTMENT survey 2015

46 The planned apartment projects for 2015 are summarized in the following tables: Market RATE City Apartment Project Units Des Moines Cityville - Phase II 111 R & T Lofts 85 Equitable Building 146 City Square 124 Copper Crossing 110 East Village Tower 103 Carmen Estates 96 The Edge 90 Southern Horizons Townhomes 70 Wilkins Building 30 Randolph Building 55 Meadow Cove 36 Southern Meadows 34 Broadway Heights - Phase III 30 Nexus 142 Ankeny Lakeshore 85 Tradition 36 Clive Stonegate Crossing 66 Grimes Meadowlark - Phase III 90 Waukee The Springs at Waukee 260 Autumn Ridge - Phase 1 56 West Des Moines Cascades at Jordan Creek 264 BelleMeade 180 Greenway Square 57 Keystone at West Glen 30 Johnston NW 62nd Street Apartments 162 Cadence 90 Norwalk Legacy Landing 120 TOTAL 2,758 total 2,760 TAX CREDIT City Apartment Project Units Des Moines Hilltop - Phase I/II 108 R & T Lofts 80 Melbourne - Phase IV 72 Wilkins Building 30 total 290 The 3,048 total units of planned development in 2015 is a 4% increase over the 2,943 total units planned in It should be noted that typically not all planned units are actually delivered to the market. Thus the adjacent charts are primarily based on discussions with city development officials. The low vacancy rates and increasing rents observed throughout Greater Des Moines over the past few years have led to this substantial amount of planned development. There has been steady demand for apartment units since the recession. Vacancy levels are remaining low and rental rates are increasing, with fewer concessions offered. The increased demand is a result of many factors including but not limited to a shift to renting by choice, lack of consistent job formation thus allowing renters the flexibility to follow jobs, increasing population, delayed household creation, and millennials who make up 31% of the renter pool desiring flexibility, walkability, urban living and amenities. In 2015 well over 2000 units are expected to be delivered to the market. While demand is expected to remain healthy it is likely that the market will experience some normalization to slight softening in occupancy levels and rent growth. Increased single family housing options and affordability will also be a competitive element to apartment absorption in Des Moines Metro real estate APARTMENT survey