STAFF REPORT. APPLICANT: AW Engineering on behalf of Jack Grover

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1 STAFF REPORT To: From: Planning and Zoning Commission Annie Dell Isola, Deputy Planning & Zoning Administrator Doug Self, Community Development Director Report Date: November 8, 2018 Meeting Date: November 14, 2018 Project Name: AX18-1 Grover Property Annexation & Rezone RE: Public Hearing/Possible Recommendation SUMMARY: The owner is requesting the annexation of an 11.2 acre property and a change in zoning designation from Multi-Family (R3) to Commercial Corridor (CC). The property includes a single-family residence with an associated cabin and the remainder of the parcel is currently used for pasture. Staff recommends that P&Z hold a public hearing and consider the proposed zoning. Staff further recommends that P&Z consider an alternative re-zone designation to Commercial Mixed-Use (CX) and Design Review Overlay, based on the analysis provided in this report. P&Z will make a re-zone recommendation to City Council and may choose to provide a recommendation on the annexation as well. APPLICANT: AW Engineering on behalf of Jack Grover LAND OWNER: Leona N. Grover Family Trust, rep. by Jack Grover LOCATION: 552 S Hwy 33 RP NUMBER: RP05N45E (approx acres) EXISTING ZONING: Area of Impact Multi-Family Residential (R-3) REQUESTED ZONING: CC (Commercial Corridor) AREA OF IMPACT DESIGNATION: Mixed-Use AOI R-3 I. PUBLIC COMMENT: This request has been noticed in accordance with Idaho Code As of the date of this report, the following public comments have been received (EXHIBIT D): Bruce Simon, developer of Creekside Meadows PUD across Hwy 33, submitted a comment letter opposing the annexation and zone change request. Shawn Hill, Executive Director, Valley Advocates for Responsible Development, submitted a comment letter recommending a development agreement be executed with any rezone, to ensure that the 15% commercial floor area maximum and other Comprehensive Plan provisions are met. Page 1 of 7

2 II. SERVICE PROVIDER COMMENT: The proposal was sent to service providers (Teton County, Teton County School District, Fire District, and RAD Curbside) but no comments were received as of the date of this report. III. BACKGROUND: The 11.2 acre subject property is currently zoned entirely Area of Impact R-3 (Multiple-Family Residential). The property is contiguous with the Driggs City limits along its north, east, and south boundaries, with W 500 S, S Hwy 33, and S Bates Rd bordering the property, respectively. The property currently contains a single-family residence on the northern portion of the parcel with an associated guest cabin, each with a permitted residential driveway access onto Highway 33. The homes are served by Driggs water service and a private septic. To the south is a National Wetland Inventory mapped wetland associated with an irrigation canal and on the southernmost approximately 4 acres is an area of farmland/pasture. There are currently no development plans for the property proposed to be annexed and the owners are pursuing this annexation and rezone in an effort to improve the prospect for selling the parcel. The application narrative states: Being annexed into the city with the CC zoning makes the parcel more marketable by offering more options to interested buyers. IV.REVIEW CRITERIA: Procedures for category A annexations: Lands lying contiguous or adjacent to any city in the state of Idaho may be annexed by the city if the proposed annexation meets the requirements of category A. Upon determining that a proposed annexation meets such requirements, a city may initiate the planning and zoning procedures set forth in chapter 65, title 67, Idaho Code, to establish the comprehensive planning policies, where necessary, and zoning classification of the lands to be annexed. P&Z is required by Idaho Code to recommend the appropriate zoning designation and any necessary Comprehensive Plan changes for a property prior to it being annexed by the City Council. P&Z has also traditionally recommended the appropriateness of the annexation. Upon receiving a rezone recommendation from P&Z, City Council will hold a hearing to consider whether the annexation provides a compelling public benefit, and make a final decision on the zoning designation. V. ANALYSIS: Staff s analysis of the proposed annexation and rezone is identified below: Category A Annexation Process as per Idaho Code and Idaho Code Land is contiguous to the city The lot is surrounded on three sides by property located within the City of Driggs. Consent of all private landowners received Applicant Land included in the Comp Plan [FLUM] See analysis below Comprehensive Plan policies identified Complies with the objective of the Area of Impact that identifies land that is reasonably expected to be annexed. Appropriate zoning of lands to be annexed identified See 14.9 analysis below Annexation Criteria per Driggs Land Development Code Determine if the Annexation provides a See analysis below compelling public benefit Page 2 of 7

3 1. Fiscal Impacts Staff finds that the City will see a slight financial benefit as a result of the annexation. The Driggs levy rate of would apply on the property valued at $332,742 to generate an additional $ in property tax revenue for the city. If the property were to be built on the impact fees would be collected by and used in the city instead of collected and used throughout the entire county. A portion of S Bates (278 ) and 500 S (504 ) that border the north and south lot lines are already considered Driggs rights-of-way because they are adjacent to the existing city boundary, so the road maintenance obligation of the city would not be increased from the annexation of the subject property. 2. Transportation: The current residential access onto the property is from Highway 33. The property also abuts approximately 500 feet of S500W, currently a gravel road. The Public Works Director has determined that the current condition of S 500 W does not meet the minimum city road standard. The property also abuts approximately 300 feet of South Bates Rd, also a gravel road. No improvements to these roads are proposed by the applicant. As a condition of annexation, staff recommends requiring any significant new development taking access from S 500 or South Bates to improve the road(s) being accessed to city standards and commit to providing a share of the cost of any Hwy 33 intersection improvements required by the Idaho Transportation Department. Impact fee credits would be eligible for improvement of South Bates Rd, as a collector road. The Driggs Transportation Access Plan agreement with Idaho Transportation Department supports one Hwy 33 access for the property, aligned with Clubmoss Ln on the east side. No other Hwy 33 access would be permitted. The two existing single-family residential driveway permits can remain, but only to access these uses and not as access to future, potentially more intensive uses. Staff recommends that a condition of the annexation be that any new development proposing access from Hwy 33 shall obtain the necessary access and encroachment permits from ITD at time of development application submittal to the City of Driggs. 3. Wetlands: The property contains an area of approximately 2 acres designated as wetland on the National Wetland Inventory map. This area roughly corresponds to the dense tree canopy in the middle of the property, which surrounds an irrigation canal crossing the property from east to west. City code requires protection of wetland areas with a riparian buffer of 100 for NWI identified wetlands. The Land Development Code also requires that development avoid the disturbance of natural vegetation to the maximum extent possible. To ensure the forested wetland is protected prior to a development application being submitted, staff recommends that a condition of annexation be the protection of existing wetlands onsite and include the requirement that any future development shall complete a wetland delineation before approval of a new development application. 4. Utilities: The Public Works Director submitted comments regarding existing and future utilities onsite. The property is currently served by the city water system, via a 2 spur, but is not on the city sewer system. The city sewer main is located approximately 120' feet to the east, on the opposite side of Highway 33. The applicant proposes to continue using the existing septic system and not connect to the city sewer system. The City Code ( 7-3-4) states that it is unlawful for the owner or any other person occupying or having charge of any premises within the city located within three hundred feet (300') of a sewer main to dispose of sewage therefrom by any means other than by use of the city Page 3 of 7

4 sewer system, and further states that any request for a variance from this requirement would require written approval from City Council in order to use a septic tank on the property. Staff recommends that City Council issue a formal variance for this property to continue the use of the existing residential septic system at this time but recommends that a condition of annexation be that commensurate with any future development activity necessitating increased waste water disposal beyond the two residential units, the owner shall connect such future development to the Driggs sewer system. Deferring this connection until future development is recommended because the proposed land use will affect the line size and location. Rezone Criteria per Driggs Land Development Code 14.9 Requirement Conforms Analysis Public Hearing Held (P&Z) 11/14/18 P&Z meeting Public Hearing Posted Approval Criteria [ listed below (#1-9)] See analysis below 1. The requested Zoning Map Amendment substantially conforms to the Comprehensive Plan, as written, without additional conditions. The Driggs Comprehensive Plan, which applies in both the city and area of impact, designates the future land use of this property (as well as other property to the east and south along Hwy 33) as Mixed Use (f) and includes the following recommendations: Mixed-Use Mixed-Use areas will vary from a mixing of residential types (detached single family, condos and row houses), to live/work districts that allow business owners to live in the same structure where their trade is pursued, to a three-story stacking of retail, office and condominium type development. Minimum residential to commercial ratios and restrictions on allowed commercial uses should be implemented to ensure that mixed-use does not become commercial sprawl, but rather creates diverse neighborhoods, where people can walk to work and/or to get their daily essentials. Residential density in mixed-use projects should be in the high-density range. MU_f: This Mixed-Use area contains properties with highway frontage between Johnson Avenue and Teton Creek, including platted commercial and mixed-use development in Creekside Meadows and Driggs Gateway Center. Commercial use should be limited to 15% of total floor area. Wetlands may exist on some parcels and the city should consider offering density or other bonuses for the incorporation of wetlands as open space within developments. Accommodation uses would be appropriate in this area as well as mixed-use office-residential complexes. Provision of pathway connections paralleling SH33 should be required. The Future Land Use Map recommendations state that commercial use should be limited to 15% of total floor area in order to ensure that mixed-use does not become commercial sprawl. Chapter 14 (Land Use) of the Comprehensive Plan also contains the objective to Designate appropriate areas to support desired economic development, while protecting the Central Business District as the city s primary retail center, and preventing commercial sprawl along the highway 33 scenic corridor. The Commercial Corridor (CC) Zone allows for a general building building type, which does not contain a required residential component, and also allows retail establishments of up to 50,000 square feet. Therefore, a development similar to the Broulim s retail center would be permissible on the property under the CC zoning designation (though subject to newer design standards). Staff finds that the proposed CC zone designation does not conform with the Comprehensive Plan or associated Future Land Use Map because it does not fully support residentially-dominant mixed- Page 4 of 7

5 use development. Staff recommends that P&Z consider the CX (Commercial Mixed-Use) Zone at this location as an alternative commercial zoning, which encourages more residentially-dominated mixed-use development. The description of the CX zone states that it should be applied in areas where, the existing or proposed land use pattern promotes mixed use and pedestrian-oriented activity. Staff further recommends that a condition of the annexation include a reference to the Comprehensive Plan s definition of MU_f commercial uses, which would limit commercial use to 15% of the total floor area of development at this location. Chapter 9 (Community Design) of the Comprehensive Plan contains multiple goals and objectives related to the design vision for Driggs, including an objective to create and maintain attractive gateways to Driggs on Hwy 33 (South and North). The Driggs Design Review Overlay and associated standards apply along the entire Hwy 33 and Ski Hill Road frontage within City limits. The original Design Review Overlay was applied along Hwy 33 at a standard depth of 330 ft from the road right of way but more recently has been applied to entire commercial/mixed-use properties & developments. Staff recommends that this parcel be zoned in the Driggs Design Review Overlay, in its entirety. If the original 330 foot depth were applied to this parcel, approximately one acre in the northwest corner of the parcel would remain outside of the overlay. Staff finds that including the entire parcel will ensure consist community design across the entire parcel and any associated future development. 2. The requested Zoning Map Amendment substantially conforms to the stated purpose and intent of this Land Development Code. The annexation request includes no further detail on proposed development onsite. Land Development Code (Purpose and Intent) states This Land Development Code is adopted for the purpose of guiding development in accordance with the adopted Comprehensive Plan ; whereas the requested zoning has been found to not conform to the Comprehensive Plan, it would also not substantially conform to the Land Development Code stated purpose and intent. Staff recommends that P&Z consider a rezone to the CX zone, with inclusion of the entire parcel in the Design Review Overlay, in order to conform to the stated purpose of the LDC, as described above. 3. The Zoning Map Amendment will reinforce the existing or planned character of the area. This parcel is surrounded on the northeast and south by developments zoned CC and properties zoned CX along the southeast. A majority of the parcels zoned CC south of Johnson Ave are part of larger planned developments that have fully integrated residential uses (apartments, townhomes, and single-family homes) included in their approved development plans. Without any such development proposal at this time, staff is not able to confirm that future development on the proposed parcel to be annexed would include the desired mixed-uses required by the comprehensive plan. Driggs Gateway Center is the development, zoned CC, located directly to the south of the proposed annexation parcel. This development includes a Development Agreement which limits the amount of total retail area that can be developed onsite and sets a maximum retail building size of 5,000sqft max. In addition, certain auto-oriented uses such as gas stations and auto sales and services uses are restricted. In order to maintain the planned character of this area, staff recommends that P&Z consider a rezone to the CX Zone, with the referenced condition of 15% maximum commercial floor area. If the property sold to a future developer, the developer could request a zoning amendment conditioned on a specific development and potentially negotiate revision of the suggested standards, possibly utilizing the Comprehensive Plan s wetland protection development bonus recommendation to increase the allowed commercial floor area. Page 5 of 7

6 4. The subject property is appropriate for development allowed in the proposed district. As stated above, staff finds that the heavier commercial uses allowed in the CC zone are not appropriate at the subject property without a more detailed development plan and associated agreement. Staff recommends that the CX zone be considered instead as it encourages more residentially oriented mixed-use development, along with including the full parcel in the Design Review Overlay. 5. There are substantial reasons why the property cannot be used according to the existing zoning. The existing zone is an Area of Impact zone which will need to be rezoned in accordance with the proposed annexation. 6. There is a need for the proposed use at the proposed location. There are no associated development plans submitted with the annexation and rezone application. The CC zone supports a wide range of commercial uses, including auto-intensive uses requiring larger land area than other mixed-use zones. Staff has calculated that there are approximately 200 acres of commercially zoned, vacant land within City limits to date. P&Z should consider if there is a need for more commercial-zoned property at this time. The CX zone allows for more residential and mixed-use type development, as well as a number of the same commercial uses allowed in the CC zone. With the recommended 15% commercial floor area cap applied, P&Z should consider if there is a need for higher density residential development that can provide mixed-use opportunities in this area of town. 7. The City and other service providers will, be able to provide sufficient public facilities and services to the site (i.e. schools, roads, wastewater treatment, stormwater facilities, fire services) while maintaining sufficient levels of service to existing development. The property is already served by City water and connection to the City sewer system is a recommended condition of annexation approval which shall apply to any future development. The parcel is bordered by three different roads and has approved ITD Hwy accesses for the existing residences. Any future development proposal will have to be reviewed by all service providers including public works and the fire district. 8. The Zoning Map Amendment will not significantly impact the natural environment, including air, water, noise stormwater, wildlife, and vegetation. Future development will have to be reviewed for its impact on the natural environment, including the wetland protections recommended as a condition of annexation. 9. The Zoning Map Amendment will not have a significant adverse impact on property in the vicinity of the subject property. Future development will have to be reviewed for its impacts on adjacent properties at the time it is proposed. Staff finds that the rezone to the CX zone would allow for development consistent with adjacent properties, which are predominantly mixed-use developments as guided by the Comprehensive Plan. The proposed conditions of annexation will also help ensure that the property does not have an adverse impact on other property in the vicinity. Page 6 of 7

7 VI.STAFF RECOMMENDATION Staff recommends that P&Z hold a public hearing and consider the public benefit analysis in the Staff Report and make a formal zoning recommendation for the proposed annexed land. The Code does not require that P&Z make a recommendation on the Annexation itself, but Staff supports a motion or comments from P&Z be made. Motion Options: Approve Rezone: Motion to recommend approval of the rezone of the 11.2 acre Grover parcel to be zoned CX (Commercial Mixed Use) and Design Review Overlay on the entire parcel. The recommendation is based on the finding that the zoning recommendation complies with the Driggs Comprehensive Plan and approval criteria of Article 14.9 as stated in the Staff Report. This rezone recommendation is contingent on the City Council approving the Annexation with the conditions as recommended. Table: Motion to table the re-zone and annexation request until additional information is provided [to be determined by P&Z]. Optional Comments on the De-Annexation: Approve: Motion to recommend approval of the annexation request with the following conditions: 1. Any significant new development taking access from S 500 or South Bates shall improve the road(s) being accessed to city standards and commit to providing a share of the cost of any Hwy 33 intersection improvements required by the Idaho Transportation Department. 2. Any new development proposing access from Hwy 33 shall obtain the necessary access and encroachment permits from ITD at time of development application submittal to the City of Driggs 3. Existing wetlands onsite shall be preserved and future development shall require the completion of a wetland delineation before a new development application is approved. 4. Any future development activity necessitating increased waste water disposal beyond the two residential units shall require a connection to the Driggs sewer system including all applicable construction costs and City connection / extension fees and application processes. 5. Any future commercial use shall be limited to 15% of the total developed gross floor area on the subject property. This recommendation for approval is based on the finding that, with the stated conditions, the annexation provides a compelling public benefit and complies with the Comprehensive Plan. Deny: Motion to deny the rezone and the de-annexation request based on the finding that the deannexation does not provide a compelling public benefit because: [identify reasons] ATTACHMENTS: EXHIBIT A: Vicinity Map EXHIBIT B: Narrative EXHIBIT C: Survey EXHIBIT D: Public Comments Page 7 of 7

8 EXHIBIT A DX Short St REC Teton Ave NX CX Gemstone Gemstone Ave Garnet Garnet Ave Ruby Diamnod St RC-0.5 CC Opal Ave IX RS-3 Johnson Ave RM-2 St Cottonwood St ide W Stream side ms trea side Creek ES RX s wk Ha w Dr Vie AOI ADR-2.5 RS-7 Teton Vista Dr ows Mead Ave CON EW oodl and Wy Teton Vista Fo Vie rest wd r Teton Vista Ave Centennial Mountain St AOI R-3 AOI R-1 y nn Dr Su E. dow a Me W Sunny Meadow Ave Legend Driggs_City_Limits_ Grover Annexation (11.2 ac) Design Review Overlay Driggs Area of Impact parcels Aerographics, Inc., Teton County GIS Vicinity Map- Zoning Grover Annexation (11.2 acres, 552 S Hwy 33, Driggs) 1 inch = 612 feet Data Sources: Teton County, ID; and City of Driggs Disclaimer: Data contains spatial inaccuracies and is for zoning reference only; The City of Driggs shall not be held liable for improper or incorrect use of the data described and/or contained herein. ¹

9 EXHIBIT B

10 EXHIBIT B

11 EXHIBIT B

12 EXHIBIT C PROPERTY ANNEXATION DESCRIPTION VICINITY MAP CITY OF DRIGGS APPROVAL SURVEYOR'S CERTIFICATE SCALE 1" = 100' RECORDER'S CERTIFICATE OWNER'S CERTIFICATE ANNEXATION BOUNDARY MAP -RECORD OF SURVEYPart of NE 1/4 SW 1/4 Sec 35, Twp 5 N., Rng 45 E. B.M. Teton Co., Idaho Owner: LEONA N. GROVER FAMILY TRUST c/o Jack Grover 3779 S. Maze Place Boise, ID survey CC / proj survey drawing: annexation.dwg TTS E rev. JW AX18-1 RECEIVED G

13 EXHIBIT D November 5, 2018 RE: REZONING REQUEST 552 S. Highway 33 VIA adellisola@driggsidaho.org Dear Sirs & Madams; I absolutely oppose this annexation and rezoning request for the following reasons: 1. There is very little demand for commercial lots in Driggs, both now and in the past many years. I currently own 14 acres of developed commercial land across the highway and I have not been able to sell any of it. I struggle to control the thistles while I wait for some sort of market to develop. 2. In a request to develop part of my commercial into housing the preliminary approval came with the stipulation that the highway must be widened. If this is the position of the city you certainly cannot put more commercial on the highway across the street. 3. It is likely that ITD would not allow any new highway approaches. 4. There are no city services on the west side of the highway. Again please turn down this rezoning request. Perhaps another time in the future there might be demand for more commercial in Driggs. We have to develop the existing before we zone more that will sit idle. Please let me know that you have received this letter and it is part of the record. Ciara Thomas will be attending the hearing and expressing opposition on our behalf. Sincerely, Bruce Simon Creekside Meadows Developer

14 EXHIBIT D November 5, 2018 Driggs Planning & Zoning Commission PO Box 48 Driggs, ID Re: Grover Rezone Dear Planning & Zoning Commission: We have reservations regarding the Grover rezone. It appears Driggs has an abundance of vacant commercially-zoned land. In the event that the Planning & Zoning Commission considers approval of the rezone, we recommend the requirement of a development agreement. A development agreement can ensure that the 15% commercial floor area maximum and other Comprehensive Plan provisions are met. Respectfully, Shawn W. Hill Executive Director